PRICE ELASTICITY OF RESIDENTIAL DEMAND FOR WATER - A METAANALYSIS

Meta-analysis is used to determine if there are factors that systemati cally affect price elasticity estimates in studies of residential wate r demand in the United States. An econometric model is estimated, usin g price elasticity estimates from previous studies as the dependent va riable. Explanatory variables include functional form, cross-sectional versus time series, water price specification, rate structure, locati on, season, and estimation technique. Inclusion of income, rainfall, a nd evapotranspiration are all found to influence the estimate of the p rice elasticity. Population density, household size, and temperature d o not significantly influence the estimate of the price elasticity. Pr icing structure and season are also found to significantly influence t he estimate of the price elasticity.