Price elasticity of water demand considering scarcity and attitudes

Garrone, Paola; Grilli, Luca; Marzano, Riccardo

doi:10.1016/j.jup.2019.100927

Cited by 40 publications

(24 citation statements)

References 44 publications

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“…As an example, consider two treatment cycles around August 21, which we used as an example of treatment days in the beginning of this subsection. The day-ahead forecasts for the maximum temperatures exceeded the threshold (31°C or equivalently 88°F) for August 17,21,22,28,29,and 31. Note that the treatment days were not necessarily consecutive because a treatment day had to be a weekday and its forecast maximum temperature had to be above the threshold.…”

Section: B Treatmentsmentioning

confidence: 99%

Moral Suasion and Economic Incentives: Field Experimental Evidence from Energy Demand

2018

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Firms and governments often use moral suasion and economic incentives to influence intrinsic and extrinsic motivations for economic activities. To investigate persistence of such interventions, we randomly assign households to moral suasion and dynamic pricing that stimulate energy conservation during peak-demand hours. We find significant habituation and dishabituation for moral suasion-the treatment effect diminishes after repeated interventions but can be restored to the original level by a sufficient time interval between interventions. Economic incentives induce larger treatment effects, little habituation, and significant habit formation. Our results suggest moral suasion and economic incentives produce substantially different short-run and long-run policy impacts.

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Section: B Treatmentsmentioning

confidence: 99%

Moral Suasion and Economic Incentives: Field Experimental Evidence from Energy Demand

2018

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“…Regarding water use habits, respondents were invited to provide information on the frequency of their showers and baths on a weekly basis, their shower time, time pattern of washing machine use, frequency of watering (plants and garden area), and garden irrigation times. 10 Respondents were asked to rate their personal environmental attitudes and provide information about their most recent exposure to informational campaigns (e.g. government messages on the media, TV and newspaper ads) on water conservation issues.…”

Section: Resultsmentioning

confidence: 99%

“…Water scarcity may play a key role in shaping water consumption (Prediger et al, 2014) and water users' responsiveness to incentives (Krause et al, 2003). Aside from 'other-regarding' opportunity costs (Pfaff at al., 2015), which can contribute to water savings regardless of the adoption of demand management strategies, scarcity may act as a focusing device that makes individuals more reactive to economic incentives (Garrone et al, 2019). First, social recognition can be a powerful trigger, especially in contexts where the applauded behavior is more relevant from a social point of view, i.e.…”

Section: Literature Review and Research Hypothesesmentioning

confidence: 99%

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Incentives to water conservation under scarcity: Comparing price and reward effects through stated preferences

Garrone

Grilli

Marzano

2020

Journal of Cleaner Production

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Focusing on two different European institutional contexts, a stated preference approach is adopted to elicit the willingness to save water under three alternative incentive policies: a water price increase, monetary reward, and symbolic prize. In addition, two water scarcity scenarios, a 'critical' and a 'regular' scenario, are devised to analyze how information on water scarcity moderates the effect of incentives. Empirical results show that users become sensitive to monetary incentives (while they remain insensitive to non-monetary ones) when water is scarce. Batteries of pre-tests on the sample and robustness checks on the results strengthen the reliability of our findings and partially circumvent concerns related to the use of a stated preference approach. The study adds to the literature on the efficacy of economic incentives in the water sector and the role of local factors in explaining water users' response.

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“…In summary, multiple factors need to be considered in establishing a reasonable agricultural water price system. Differentiated water pricing methods can reflect changes in the social economy and make agricultural water prices more reasonable [12][13][14][15][16].…”

Section: Introductionmentioning

confidence: 99%

An Agricultural Interval Two-Stage Fuzzy Differential Water Price Model (ITS-DWPM) for Initial Water Rights Allocation in Hulin, China

Yan

Wang

Li³

2020

Water

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In recent years, China’s agricultural water consumption has been high, while water inefficiency has restricted the development of the economy. In this study, we developed an agricultural interval two-stage fuzzy differential water prices model (ITS-DWPM) by incorporating the techniques of two-stage programming (TP) and interval-parameter programming (IPP) based on the differential water price. The ITS-DWPM can link the associated economic penalty attributed to the violation of the preregulated water target and the total system benefit under limited data availabilities (expressed stochastic and interval values); meanwhile, inaccurate water quantity data and dynamic economic data would be resolved. The methodology tended to resolve the complexity of initial water rights allocation problems, incorporating the relevant sectors as well as the agricultural irrigation system construction involved in water management decision. Furthermore, the model takes into account the restrictions on water quantity and price. In addition, multiple decision results were calculated under different states of water shortage. The developed method is applied to initial water rights allocation and agricultural irrigation system construction. The results generated can assist decision makers not only in formulating water rights allocation strategies, but also in balancing the contradiction between economic objectives and water resources control indicators. In 2020, the irrigation water utilization coefficient of each agricultural irrigation area in Hulin City should reach 0.55. Hutou needs to increase its agricultural irrigation channels by at least 4.49%, Shitouhe by at least 4.03%, and Daxinancha by at least 4.49%.

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Price elasticity of water demand considering scarcity and attitudes

Cited by 40 publications

References 44 publications

Moral Suasion and Economic Incentives: Field Experimental Evidence from Energy Demand

Moral Suasion and Economic Incentives: Field Experimental Evidence from Energy Demand

Incentives to water conservation under scarcity: Comparing price and reward effects through stated preferences

An Agricultural Interval Two-Stage Fuzzy Differential Water Price Model (ITS-DWPM) for Initial Water Rights Allocation in Hulin, China

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