Do droughts have long-term effects on water consumption? Evidence from the urban area of Barcelona
Xavier Fageda and
Applied Economics, 2015, vol. 47, issue 48, 5131-5146
This article examines the long-term effects of droughts on water consumption using data of municipalities of the urban area of Barcelona. Two important characteristics of the sample of municipalities are the relatively low water consumption in the pre-drought period and the fact that indoor uses are clearly predominant. Controlling for prices, income and various socio-demographic factors, we find a reduction in water consumption not only during the drought episode but also in subsequent periods. These permanent reductions in water use may be explained by household behavioural changes, technological changes or structural water policy changes.
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