Water demand under alternative price structures

被引:279
作者
Olmstead, Sheila M.
Hanemann, W. Michael
Stavins, Robert N.
机构
[1] Yale Univ, Sch Forestry & Environm Studies, New Haven, CT 06511 USA
[2] Univ Calif Berkeley, Dept Agr & Resource Econ, Berkeley, CA 94720 USA
[3] Harvard Univ, John F Kennedy Sch Govt, Cambridge, MA 02138 USA
[4] Resources Future Inc, Washington, DC 20036 USA
基金
美国国家科学基金会;
关键词
water demand; price elasticity; non-linear pricing;
D O I
10.1016/j.jeem.2007.03.002
中图分类号
F [经济];
学科分类号
02 ;
摘要
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. (c) 2007 Elsevier Inc. All rights reserved.
引用
收藏
页码:181 / 198
页数:18
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