Water
Potential course papers dealing with water issues.
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Kenney et al., 2008
- Simple overview paper that introduces topic. ABSTRACT: Residential water demand is a function of several factors, some of which are within the control of water utilities (e.g., price, water restrictions, rebate programs) and some of which are not (e.g., climate and weather, demographic characteristics). In this study of Aurora, Colorado, factors influencing residential water demand are reviewed during a turbulent drought period (2000-2005). Findings expand the understanding of res- idential demand in at least three salient ways: first, by documenting that pricing and outdoor water restriction policies interact with each other ensuring that total water savings are not additive of each program operating independently; second, by showing that the effectiveness of pricing and restrictions policies varies among differ- ent classes of customers (i.e., low, middle, and high volume water users) and between predrought and drought periods; and third, in demonstrating that real-time information about consumptive use (via the Water Smart Reader) helps customers reach water-use targets.
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Olmstead et al., 2007
- Abstract We estimate the price elasticity of water demand with household-level data, structurally modeling the piecewise-linear budget constraints imposed by increasing block pricing. We develop a mathematical expression for the unconditional price elasticity of demand under increasing block prices and compare conditional and unconditional elasticities analytically and empirically. We test the hypothesis that price elasticity may depend on price structure, beyond technical differences in elasticity concepts. Due to the possibility of endogenous utility price structure choice, observed differences in elasticity across price structures may be due either to a behavioral response to price structure, or to underlying heterogeneity among water utility service areas.
