Price Elasticity and Conservation Potential

by David S. Hasson, Water Management Economics, Portland, United States,

Document Type: Proceeding Paper

Part of: Water Management in the '90s: A Time for Innovation

Abstract: Water conservation programs usually contain pricing incentives for users to limit water consumption. This analysis uses data from the Portland, Oregon water system as an example of both the reasons for conservation pricing and the limitations of doing so. The results suggest that system planners and policy makers need to have realistic expectations about the effectiveness of conservation rate structures in achieving water savings objectives in order to adequately plan for future supply needs.

Subject Headings: Water conservation | Pricing | Elastic analysis | Water supply systems | Regression analysis | Data analysis | Oregon

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