TRICK OR TREAT - AN OFFER TO OBTAIN METERED WATER

In this paper we examine the possible reasons why individuals who live in homes facing a flat monthly rate for water accept or reject an off er to have water metering devices installed at no cost to them. A legi t model is used to model the discrete choice of acceptance. Since the demand for metering is directly tied to water demand, we estimate dema nd models for unmetered households in the Reno/Sparks metropolitan are a using contingent data obtained by presenting households with hypothe tical prices they might encounter under a metering system. Conditional legit and demand models are then used to examine the potential for me tering to promote water conservation in the arid Reno/Sparks, Nevada m etropolitan area.