Comunicação em evento científico
Are ill-informed residential water consumers less price-responsive?
Henrique Monteiro (Monteiro, H.); Maria Rita Vieira Martins (Rita Martins); Joaquim Ramalho (Ramalho, J.J.S.); Esmeralda A. Ramalho (Ramalho, E.A.);
Título Evento
6th World Congress of Environmental and Resource Economists
Ano (publicação definitiva)
Mais Informação
Web of Science®

Esta publicação não está indexada na Web of Science®


Esta publicação não está indexada na Scopus

Google Scholar

N.º de citações: 3

(Última verificação: 2023-11-30 23:29)

Ver o registo no Google Scholar

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. However, in a framework where consumers face complex tariff schemes, and water bills tend to represent a reduced household expenditure, this awareness cannot be taken by granted. In this paper, we estimate a discrete continuous choice (DCC) model of residential water demand in Portugal that allows price elasticities to change as a function of consumers’ perception of their water bills. A control function approach is added to the DCC model to deal with the potential endogeneity of the perception indicator. We find water demand to be price-inelastic, but less so if consumers’ awareness about the amount they pay is higher. We also provide novel findings on the impact of environmentally-friendly behaviors, rainwater harvesting and availability of alternative water sources.
residential water demand estimation,perceptions,discrete continuous choice model,control function.