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Forecasting the Public's Acceptability of Municipal Water Regulation and Price Rationing for Communities on the Ogallala Aquifer

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Listed:
  • Edwards, Jeffrey A.
  • Wade, Tara R.
  • Burkey, Mark L.
  • Pumphrey, R. Gary

Abstract

Among many, increasing the price of municipal water is considered to be the most effective mechanism for enhancing municipal water conservation, whether during times of drought or not. However, increasing the price of something that is considered to be, literally, a life-giving resource is politically taboo. This study follows two others that evaluate survey data with Likert scale responses, in determining whether or not constituents would outright reject the idea of using price to ration municipal water. But it goes several steps further--it controls for both community and respondent level variables, calculates and evaluates in-sample response probabilities, and most importantly, attempts to forecast the attitudes of constituents in communities that are not in our survey sample. In the end, our model produces both in-sample and out-of-sample response probabilities that are reasonable, and relatively stable across communities; it therefore provides communities and researchers with a means to gauge public support for pricing initiatives.

Suggested Citation

  • Edwards, Jeffrey A. & Wade, Tara R. & Burkey, Mark L. & Pumphrey, R. Gary, 2013. "Forecasting the Public's Acceptability of Municipal Water Regulation and Price Rationing for Communities on the Ogallala Aquifer," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149579, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:149579
    DOI: 10.22004/ag.econ.149579
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    References listed on IDEAS

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    More about this item

    Keywords

    Environmental Economics and Policy;

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets

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