A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Price perception and nonprice controls under conservation rate structures
This research evaluates the effect of price and nonprice conservation controls on monthly water system demand and explores differences in rate design, education and outreach programs, population growth, and regional climate variables among a national cross section of utilities. Using the Shin price perception parameter, this study found that under conservation rate structures, aggregate demand was related to something other than marginal or average price. The price‐demand response increases with higher levels of consumption for both the marginal price and the total bill, which may provide preliminary evidence that the price signal of the total bill matters for demand. Nonprice controls were not found to be statistically significant in the study sample. Income elasticities were positive and slightly larger in magnitude than price elasticities, suggesting that over the long term, utility managers may need to increase rates faster than regional income growth for effective demand management.
Price perception and nonprice controls under conservation rate structures
This research evaluates the effect of price and nonprice conservation controls on monthly water system demand and explores differences in rate design, education and outreach programs, population growth, and regional climate variables among a national cross section of utilities. Using the Shin price perception parameter, this study found that under conservation rate structures, aggregate demand was related to something other than marginal or average price. The price‐demand response increases with higher levels of consumption for both the marginal price and the total bill, which may provide preliminary evidence that the price signal of the total bill matters for demand. Nonprice controls were not found to be statistically significant in the study sample. Income elasticities were positive and slightly larger in magnitude than price elasticities, suggesting that over the long term, utility managers may need to increase rates faster than regional income growth for effective demand management.
Price perception and nonprice controls under conservation rate structures
Aubuchon, Craig P. (author) / Roberson, J. Alan (author)
Journal ‐ American Water Works Association ; 104 ; E446-E456
2012-08-01
11 pages
Article (Journal)
Electronic Resource
English
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