Residential Water Consumption: A Cross Country Analysis
AbstractSurvey data from over 1,600 households in ten countries were used to analyse the determinants of residential water demand. Results show that in every country the price elasticity is negative and statistically significant. Households that do not have to pay for the water they use (volumetric water charges) consume about a third more water than similar households that do have to pay such charges. Consumers’ attitudes do not have a statistically significant effect on total water use, although they do increase the probability of households using some water saving behaviours. Volumetric water charges also have an impact on the adoption of water saving actions. Full-cost water pricing appears to be a highly effective instrument to manage residential water demand.
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Bibliographic InfoPaper provided by Australian National University, Environmental Economics Research Hub in its series Research Reports with number 94823.
Date of creation: Aug 2009
Date of revision:
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More information through EDIRC
water demand; water consumption; water pricing; Environmental Economics and Policy; Resource /Energy Economics and Policy; C21; Q25; Q50;
Other versions of this item:
- R. Quentin Grafton & Tom Kompas & Hang To & Michael Ward, 2009. "Residential Water Consumption: A Cross Country Analysis," Centre for Water Economics, Environment and Policy Papers 0901, Centre for Water Economics, Environment and Policy, Crawford School of Public Policy, The Australian National University.
- R. Quentin Grafton & Tom Kompas & Hang To & Michael Ward, 2009. "Residential Water Consumption: A Cross Country Analysis," Environmental Economics Research Hub Research Reports 0923, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University, revised Aug 2009.
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
- Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
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