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Monteiro, H., Rita Martins, Ramalho, J.J.S. & Esmeralda Ramalho (2016). The impact of price and consumption awareness on residential water demand. VII Conference of the Spanish-Portuguese Association of Resources and Environmental Economics.

H. P. Monteiro et al.,  "The impact of price and consumption awareness on residential water demand", in VII Conf. of the Spanish-Portuguese Association of Resources and Environmental Economics, Aveiro, 2016

@misc{monteiro2016_1734837020296,
	author = "Monteiro, H. and Rita Martins and Ramalho, J.J.S. and Esmeralda Ramalho",
	title = "The impact of price and consumption awareness on residential water demand",
	year = "2016",
	howpublished = "Outro",
	url = "http://www.ua.pt/degeit/aerna2016/"
}

TY  - CPAPER
TI  - The impact of price and consumption awareness on residential water demand
T2  - VII Conference of the Spanish-Portuguese Association of Resources and Environmental Economics
AU  - Monteiro, H.
AU  - Rita Martins
AU  - Ramalho, J.J.S.
AU  - Esmeralda Ramalho
PY  - 2016
CY  - Aveiro
UR  - http://www.ua.pt/degeit/aerna2016/
AB  - The vast literature estimating residential water demand assumes households are aware of and respond
to changes in the tariffs or at least in the average price paid. We show that although water consumption
does respond to prices, water conservation can also be promoted by making the consumer more aware
of the price paid and the level of consumption.
We estimate a discrete continuous choice (DCC) model of residential water demand with household
level data from Portugal combining survey data with information from water utilities and from the
Portuguese meteorological agency.
We find price and income elasticities of residential water demand to be ?0.20 and +0.07, respectively.
Nevertheless, the rigidity of demand does not establish the limit of the role that tariffs can have in
promoting water conservation. We find that households who are aware of the actual unit price and their
consumption level, look at their (electronic) water bill frequently and in detail and pay by direct debit
consume on average 53% less.
We also provide novel findings on the impact of environmentally-friendly behaviors, rainwater
harvesting and availability of alternative water sources. The impacts of weather variables and dwelling
and household features are also calculated. The presence of economies of scale in water consumption
related to household size is confirmed.
ER  -