Household water savings and response to dynamic incentives under nonlinear pricing
Publication
, Journal Article
Li, L; Jeuland, M
Published in: Journal of Environmental Economics and Management
May 1, 2023
We study the response of residential water demand to nonlinear prices by exploiting a natural experiment arising from a water pricing reform in a major Chinese city. The reform introduced an unconventional Increasing Block Tariff featuring prices set according to annual cumulative consumption and a bimonthly billing cycle. Analyzing data from a household survey and administrative water bills, we detect a small effect on low-use households but find large water savings among high-use households. Moreover, we find strong evidence that high-use households respond to future price while current price remains fixed, and that the small share of households who appear myopic do not respond to dynamic incentives.
Duke Scholars
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Published In
Journal of Environmental Economics and Management
DOI
EISSN
1096-0449
ISSN
0095-0696
Publication Date
May 1, 2023
Volume
119
Related Subject Headings
- Agricultural Economics & Policy
- 3801 Applied economics
- 1402 Applied Economics
- 1401 Economic Theory
- 0502 Environmental Science and Management
Citation
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Chicago
ICMJE
MLA
NLM
Li, L., & Jeuland, M. (2023). Household water savings and response to dynamic incentives under nonlinear pricing. Journal of Environmental Economics and Management, 119. https://doi.org/10.1016/j.jeem.2023.102811
Li, L., and M. Jeuland. “Household water savings and response to dynamic incentives under nonlinear pricing.” Journal of Environmental Economics and Management 119 (May 1, 2023). https://doi.org/10.1016/j.jeem.2023.102811.
Li L, Jeuland M. Household water savings and response to dynamic incentives under nonlinear pricing. Journal of Environmental Economics and Management. 2023 May 1;119.
Li, L., and M. Jeuland. “Household water savings and response to dynamic incentives under nonlinear pricing.” Journal of Environmental Economics and Management, vol. 119, May 2023. Scopus, doi:10.1016/j.jeem.2023.102811.
Li L, Jeuland M. Household water savings and response to dynamic incentives under nonlinear pricing. Journal of Environmental Economics and Management. 2023 May 1;119.
Published In
Journal of Environmental Economics and Management
DOI
EISSN
1096-0449
ISSN
0095-0696
Publication Date
May 1, 2023
Volume
119
Related Subject Headings
- Agricultural Economics & Policy
- 3801 Applied economics
- 1402 Applied Economics
- 1401 Economic Theory
- 0502 Environmental Science and Management