PRICE AND NON-PRICE INFLUENCES ON WATER CONSERVATION: AN ECONOMETRIC MODEL OF AGGREGATE DEMAND UNDER NONLINEAR BUDGET CONSTRAINT

Abstract

We study the influence of prices and non-price conservation programs on water consumption and conservation behavior during a drought in the San Francisco Bay Area. The empirical results show that pricing can be effective in reducing water consumption. Use restrictions and landscaping audits are also effective in inducing conservation from consumers.Demand and Price Analysis, Environmental Economics and Policy,