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Advances in the Economic Analysis of Residential Water Use: An Introduction

Author

Listed:
  • Arnaud Reynaud

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique)

  • Giulia Romano

    (University of Pisa - Università di Pisa)

Abstract

The aim of this Special Issue is to gather evidence on the impact of price policies (PP) and non-price policies (NPP) in shaping residential water use in a context of increased water scarcity. Indeed, a large body of the empirical economic literature on residential water demand has been devoted to measuring the impact of PP (water price increases, use of block rate pricing or peak pricing, etc.). The consensus is that the residential water demand is inelastic with respect to water price, but not perfectly. Given the low water price elasticity, pricing schemes may not always be effective tools for modifying household water behaviors. This is puzzling since increasing the water price is still viewed by public authorities as the most direct economic tool for inducing water conservation behaviors. Additional evidence regarding the use of PP in shaping residential water use is then required. More recently, it has been argued that residential consumers may react to NPP, such as water conservation programs, education campaigns, or smart metering. NPP are based on the idea that residential water users can implement strategies that will result in water savings via changing their individual behaviors. Feedback information based on smart water metering is an example of approach used by some water utilities. There are still large gaps in the knowledge on the residential water demand, and in particular on the impact of PP and NPP on residential water use, household water affordability and water service performance. These topics are addressed in this Special Issue "Advances in the Economic Analysis of Residential Water Use".

Suggested Citation

  • Arnaud Reynaud & Giulia Romano, 2018. "Advances in the Economic Analysis of Residential Water Use: An Introduction," Post-Print hal-01948631, HAL.
    • Handle: RePEc:hal:journl:hal-01948631
    DOI: 10.3390/w10091162
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    Citations

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    Cited by:

    1. Piubello Orsini, Luca & Leardini, Chiara & Danesi, Letizia & Guerrini, Andrea & Frison, Nicola, 2023. "Circular economy in the water and wastewater sector: Tariff impact and financial performance of SMARTechs," Utilities Policy, Elsevier, vol. 83(C).
    2. Joachim Schleich & Thomas Hillenbrand, 2019. "Residential water demand responds asymmetrically to rising and falling prices," Applied Economics, Taylor & Francis Journals, vol. 51(45), pages 4973-4981, September.
    3. Fuente, David, 2019. "The design and evaluation of water tariffs: A systematic review," Utilities Policy, Elsevier, vol. 61(C).
    4. Andrius Kažukauskas & Thomas Broberg & Jūratė Jaraitė, 2021. "Social Comparisons in Real Time: A Field Experiment of Residential Electricity and Water Use," Scandinavian Journal of Economics, Wiley Blackwell, vol. 123(2), pages 558-592, April.
    5. Lucia Cecchi & Enrico Conti & Letizia Ravagli, 2022. "The determinants of domestic water demand and the equity of tariffs: Empirical evidence from an Italian municipality," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2022(3), pages 373-395.
    6. Romano, Giulia & Guerrini, Andrea & Senoner, Thomas, 2020. "Establishing a new water tariff method that complies with european principles and respects statutory autonomy: The case of South Tyrol," Utilities Policy, Elsevier, vol. 64(C).
    7. María Ángeles García-Valiñas & Sara Suárez-Fernández, 2022. "Are Economic Tools Useful to Manage Residential Water Demand? A Review of Old Issues and Emerging Topics," Post-Print hal-04067487, HAL.
    8. Aina, Ifedotun Victor & Thiam, Djiby Racine & Dinar, Ariel, 2023. "Substitution of piped water and self-supplied groundwater: The case of residential water in South Africa," Utilities Policy, Elsevier, vol. 80(C).
    9. Ukasha Ramli, 2021. "Social Norms Based Eco-Feedback for Household Water Consumption," Sustainability, MDPI, vol. 13(5), pages 1-13, March.
    10. Gregorio Castro-Rosales & Ramiro Esqueda-Walle, 2021. "Spatial Analysis of Urban Water Use Management in the Northern Border Region of Mexico," International Journal of Business and Management, Canadian Center of Science and Education, vol. 15(11), pages 126-126, July.
    11. Schleich, Joachim & Hillenbrand, Thomas, 2019. "Water demand responds asymmetrically to rising and falling prices," Working Papers "Sustainability and Innovation" S03/2019, Fraunhofer Institute for Systems and Innovation Research (ISI).
    12. Massarutto, Antonio, 2020. "Servant of too many masters: Residential water pricing and the challenge of sustainability," Utilities Policy, Elsevier, vol. 63(C).

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