Hostname: page-component-78c5997874-lj6df Total loading time: 0 Render date: 2024-11-10T19:39:15.308Z Has data issue: false hasContentIssue false
  • English
  • Français

Drivers of Price and Nonprice Water Conservation by Urban and Rural Water Utilities: An Application of Predictive Models to Four Southern States

Published online by Cambridge University Press:  26 January 2015

Christopher N. Boyer ,
Damian C. Adams  and
Tatiana Borisova
Christopher N. Boyer
Affiliation:
Department of Agricultural and Resource Economics at the, University of Tennessee, Knoxville, Tennessee
Damian C. Adams
Affiliation:
School of Forest Resources and Conservation and Food and Resource Economics Department at the University of Florida, Gainesville, Florida
Tatiana Borisova
Affiliation:
Food and Resource Economics Department at the, University of Florida, Gainesville, Florida
Get access Rights & Permissions [Opens in a new window]

Abstract

This study examines water system characteristics, managers' attitudes and perceptions toward water conservation, and future planning strategies that influence the adoption of water conservation programs for urban and rural communities. We surveyed water system managers in Oklahoma, Arkansas, Tennessee, and Florida; and we parameterized predictive adoption models for price-based (PC) and nonprice-based (NPC) conservation programs. Notably, results suggest that information about the price elasticity of water demand for a community does encourage PC and NPC adoption; and we found no evidence that PC and NPC adoption is jointly considered by water systems.

Keywords

predictive modelssouthern USwater conservationwater system managersQ24Q30Q50
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 46 , Issue 1 , February 2014 , pp. 41 - 56
Copyright
Copyright © Southern Agricultural Economics Association 2014

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adams, D.C, Boyer, C.N., and Smolen, M.D.. Water Rate Structure: A Tool for Water Conservation in Oklahoma. Stillwater, OK: Oklahoma Cooperative Extension Service, AGEC-1017, 2009.Google Scholar
Armstrong, J.S., and Overton, T.S.. “Estimating Nonresponse Bias in Mail Surveys”. JMR, Journal of Marketing Research 16(1977):396–402.CrossRefGoogle Scholar
Atwood, C., Kreutzwiser, R., and Loe, R. de. “Residents' Assessment of an Urban Outdoor Water Conservation Program in Guelph, Ontario”. Journal of the American Water Resources Association 43(2007):427–439.CrossRefGoogle Scholar
Boyer, C.N., Adams, D.A., Borisova, T., and Clark, C.D.. “Factors Driving Water Utility Rate Structure Choice: Evidence from Four Southern U.S. States”. Water Resources Management 26(2012): 2747–60.CrossRefGoogle Scholar
Boyer, C.N., Adams, D.C., and Lucero, J.. “Rural Coverage Bias in Online Surveys?: Evidence from Oklahoma Water Managers”. Journal of Extension 48(2010). Internet site: www.joe.org/joe/2010june/tt5.php (Accessed July 2011).Google Scholar
Brookshire, D.S., Burness, H.S., Chermak, J.M., and Krause, K.. “Western Urban Water Demand”. Natural Resources Journal 2(2002): 873–898.Google Scholar
Buckley, R.A. 2004. Water Use Characteristics of College Students. Internet site: http://ist-socrates.berkeley.edu/~esl96/projects/2004final/buckley.pdf (Accessed July 2011).Google Scholar
Campbell, H.E., Johnson, R.M., and Larson, E.H.. “Prices, Devices, People, or Rules: The Relative Effectiveness of Policy Instruments in Water Conservation”. Review of Policy Research 21(2004):637–662.CrossRefGoogle Scholar
Cary, J.W. “Influencing Attitude and Changing Consumers' Household Water Consumption Behavior”. Water Science & Technology: Water Supply 8(2008):325–330.Google Scholar
Council for Agricultural Science and Technology. 2009. Water, People, and the Future: Water Availability for Agriculture in the United States. Issue Paper 44. Internet site: www.cast-science.org/websiteUploads/publicationPDFs/CAST%20Water,%20People%20and%20the%20Future%20Issue%20Paper%2044%20FINAL167.pdf (Accessed July 2011).Google Scholar
Dalhuisen, J.M., Florax, R.J.G.M., Groot, H.L.F. de, and Nijkamp, P.. “Price and Income Elasticities of Residential Water Demand: A Meta-Analysis”. Land Economics 79(2003):292–308.CrossRefGoogle Scholar
Dickinson, M.A., Maddaus, L.A., and Maddaus, W.O.. “Benefits of United States Nationwide Plumbing Efficiency Standards”. Water Supply 3(2003):231–237.CrossRefGoogle Scholar
Dillman, D.A., Smith, J., and Christian, L.. Internet, Mail, and Mixed-Mode Surveys: the Taylor Design Method. 3rd ed. New York, NY: John Wiley & Sons, 2008.Google Scholar
Ding, Y, and Peterson, J.M.. “Comparing the Cost-Effectiveness of Water Conservation Policies in a Depleting Aquifer: A Dynamic Analysis of the Kansas High Plains”. Journal of Agricultural and Applied Economics 44(2012):223–234.CrossRefGoogle Scholar
Elcock, D. “Future U.S. Water Consumption: The Role of Energy Production”. Journal of the American Water Resources Association 46(2010): 447–460.CrossRefGoogle Scholar
Espey, M., Espey, J., and Shaw, W.D.. “Price Elasticity of Residential Demand for Water: A Meta-Analysis”. Water Resources Research 33(1997):1369–1374.CrossRefGoogle Scholar
Gaudin, S. “Effect of Price Information on Residential Water Demand”. Applied Economics 38(2006):383–393.CrossRefGoogle Scholar
Geller, E.S., Erickson, J.B., and Buttram, B.A.. “Attempts to Promote Residential Water Conservation with Educational, Behavioral, and Engineering Strategies”. Population and Environment 6(1983):96–112.CrossRefGoogle Scholar
Gleick, P.H. “A Look at Twenty-First Century Water Resources Development”. Water International 25(2000): 127–128.CrossRefGoogle Scholar
Gleick, P.H. “Water Use”. Annual Review of Environment and Resources 28(2003):275–314.CrossRefGoogle Scholar
Greene, W.H. conometric Analysis. 6th ed. Upper Saddle River, NJ: Prentice Hall, 2008.Google Scholar
Haab, T.C., and McConnell, K.E.. Valuing Environmental and Natural Resources: The Econometrics of Non-Market Valuation. Northampton, MA: Edward Elgar, 2002.CrossRefGoogle Scholar
Halich, G., and Stephenson, K.. “Effectiveness of Residential Water-Use Restrictions under Varying Levels of Municipal Efforts”. Land Economics 85(2009):614–626.CrossRefGoogle Scholar
Hall, D.C. “Public Choice and Water Rate Design”. The Political Economy of Water Pricing Reforms. Dinar, A. ed. New York, NY: Oxford Univ. Press, 2000.Google Scholar
Hearne, R.R., and Kritsky, C.C.. “Characteristics of Active Local Water Management Districts in the Red River Basin”. Water Policy 12(2010): 898–912.CrossRefGoogle Scholar
Howarth, D., and Bulter, S.. “Communicating Water Conservation: How Can the Public be Engaged”? Water Science & Technology: Water Supply 4(2004):33–14.Google Scholar
Howe, C, and White, S.. “Integrated Resource Planning for Water and Wastewater: Sydney Case Studies”. Water International 24(1999): 356–362.CrossRefGoogle Scholar
Hurd, B.H. “Water Conservation and Residential Landscapes: Household Preferences, Household Choices”. Journal of Agricultural and Resource Economics 31(2006): 173–192.Google Scholar
Inman, D., and Jeffrey, P.. “A Review of Residential Water Conservation Tool Performance and Influences on Implementation Effectiveness”. Urban Water Journal 3(2006): 127–143.CrossRefGoogle Scholar
Johnson, J.W., Johnson, P.N., Guerrero, B., Weinheimer, J., Amosson, S., Almas, L., Golden, B., and Wheeler-Cook, E.. “Groundwater Policy Research: Collaboration with Groundwater Conservation Districts in Texas”. Journal of Agricultural and Applied Economics 43(2011): 345–356.CrossRefGoogle Scholar
Jordan, J.L. “Evaluating Water Conservation Strategies and Policies”. Journal of Agricultural and Applied Economics 40(2008):503–505.CrossRefGoogle Scholar
Kenney, D.S., Goemans, C., Klein, R.A., Lowery, J., and Reidy, K.. “Residential Water Demand Management: Lessons from Aurora, Colorado”. Journal of the American Water Resources Association 44(2008): 192–207.CrossRefGoogle Scholar
Kenney, D.S., Klein, R.A., and Clark, M.P.. “Use and Effectiveness of Municipal Water Restrictions during Drought in Colorado”. Journal of the American Water Resources Association 40(2004):77–87.CrossRefGoogle Scholar
Kenny, J.F., Barber, N.L., Hutson, S.S., Linsey, K.S., Lovelace, J.K., and Maupin, M.A.. 2009. Estimated Use of Water in the United States in 2005. US Geological Survey. Circular 1344. Internet site: http://pubs.usgs.gov/circ/1344/ (Accessed August 12, 2012).CrossRefGoogle Scholar
Kolokytha, E.G., and Mylopoulos, Y.A.. “Evaluating Demand Management Aspects of Urban Water Policy—A Field Survey in the City of Thessaloniki, Greece”. Urban Water 4(2002): 391–400.CrossRefGoogle Scholar
Kyureghian, G., Capps, O. Jr., and Nayga, R.M. Jr.. General Remedies to Local Problems: An Applied Researcher's Manual to Multiple Imputation. Selected Paper at Agricultural & Applied Economics Associations Annual Meetings, 2011.Google Scholar
Maddaus, W., Gleason, G., and Darmody, I.. “Integrating Conservation into Water Supply Planning”. Journal of the American Water Works Association 88(1996):57–67.CrossRefGoogle Scholar
Mansur, E.T., and Olmstead, S.M.. “The Value of Scarce Water: Measuring the Inefficiency of Municipal Regulations”. Working Paper University of Yale, 2007.CrossRefGoogle Scholar
McDaniels, T., Axelrod, L., and Cavanagh, N.. “Public Perceptions Regarding Water Quality and Attitudes toward Water Conservation in the Lower Fraser Basin”. Water Resources Research 34(1998): 1299–1306.CrossRefGoogle Scholar
McNulty, S.C, Sun, G., Cohen, E.C., and Myers, J.A. Moore. “Change in the Southern U.S. Water Demand and Supply Over the Next Forty Years”. Wetland and Water Resource Modeling and Assessment (2008)43–57.Google Scholar
Michelsen, A.M., McGuckin, J.T., and Stumpf, D.. “Nonprice Water Conservation Programs as a Demand Management Tool”. Journal of the American Water Resources Association 35(1999):593–602.CrossRefGoogle Scholar
Mullen, J.D. “Statewide Water Planning: The Georgia Experience”. Journal of Agricultural and Applied Economics 43,3(2011):357–366.CrossRefGoogle Scholar
Olmstead, S.M. “The Economics of Managing Scarce Water Resources”. Review of Environmental Economics and Policy 4(2010): 179–198.CrossRefGoogle Scholar
Olmstead, S.M., Hanemann, W.M., and Stavins, R.N.. “Water Demand under Alternative Price Structures”. Journal of Environmental Economics and Management 54(2007): 181–198.CrossRefGoogle Scholar
Olmstead, S.M., and Stavins, R.N.. “Comparing Price and Non-Price Approaches to Urban Conservation”. Water Resources Research 45(2009). doi:10.1029/2008WR007227.CrossRefGoogle Scholar
Renwick, M.E., and Archibald, S.O.. “Demand Side Management Policies for Residential Water Use: Who Bears the Conservation Burden?” Land Economics 74(1998):343–359.CrossRefGoogle Scholar
Renwick, M.E., and Green, R.D.. “Do Residential Water Demand Side Management Policies Measure Up? An Analysis of Eight California Water Agencies”. Journal of Environmental Economics and Management 40(2000):37–55.CrossRefGoogle Scholar
Rister, M.E., Sturdivant, A.W., Lacewell, R.D., and Michelsen, A.M.. “Challenges and Opportunities for Water of the Rio Grande”. Journal of Agricultural and Applied Economics 43(2011): 367–378.CrossRefGoogle Scholar
Rubin, D.B. Multiple Imputation for Nonresponse in Surveys. New York, NY: John Wiley & Sons, Inc, 1987.CrossRefGoogle Scholar
SAS Institute Inc. The QLIM and SURVEYLOGISTIC procedure. SAS 9.1 Help and Documentation. Cary, NC: SAS Institute Inc., 2004.Google Scholar
Schafer, J.L. “Multiple Imputation: A Primer”. Statistical Measures in Medical Research 8(1999):3–15.CrossRefGoogle Scholar
Schuck, E., and Profit, R.. “Evaluating Non-price Water Demand Policies during Severe Droughts”. Selected paper at American Agricultural Economics Association Annual Meeting, 2004.Google Scholar
Schunk, D. “A Markov Chain Monte Carlo Algorithm for Multiple Imputation in Large Surveys”. Advances in Statistical Analysis 92(2008): 101–114.CrossRefGoogle Scholar
Seager, R., Tzanova, A., and Nakamura, J.. “Drought in the Southeastern United States: Causes, Variability over the Last Millennium, and the Potential for Future Hydroclimate Change”. Journal of Climate 22(2009):5021–5045.CrossRefGoogle Scholar
Shaw, D.T., and Maidment, D.R.. “Effects of Conservation on Daily Water Use”. Journal of the American Water Works Association 80(1988): 71–77.CrossRefGoogle Scholar
Syme, G.J., Nancarrow, B.E., and Seligman, C.. “The Evaluation of Information Campaigns to Promote Voluntary Household Water Conservation”. Evaluation Review 24,6(2000):539–578.CrossRefGoogle Scholar
Teodoro, M.P. “Contingent Professionalism: Bureaucratic Mobility and the Adoption of Water Conservation Rates”. Journal of Public Administration: Research and Theory 20(2009): 437–459.Google Scholar
Timmins, C. “Demand-side Technology Standards under Inefficient Pricing Regimes, Are They Effective Water Conservation Tools in the Long Run”? Environmental and Resource Economics 26(2003): 107–124.CrossRefGoogle Scholar
Vickers, A. “The Future of Water Conservation: Challenges Ahead”. Water Resource Update 114(1999):49–51.Google Scholar
Timmins, C. Handbook of Water Use and Conservation: Homes, Landscapes, Businesses, Industries, and Farms. Amherst, MA: WaterPlow Press, 2001.Google Scholar
Wang, YD., Song, J.S., Byrne, J., and Yun, S.J.. “Evaluating the Persistence of Residential Water Conservation: A Panel Study of a Water Utility Program in Delaware”. Journal of the American Water Resources Association 35(1999): 1269–1276.CrossRefGoogle Scholar
Ward, F.A., Michelsen, A.M., and DeMouche, L.. “Barriers to Water Conservation in the Rio Grande Basin”. Journal of the American Water Resources Association 43(2007):237–253.CrossRefGoogle Scholar
Wheeler, E., Golden, B., Johnson, J., and Peterson, J.. “Economic Efficiency of Short-Term versus Long-Term Water Rights Buyout”. Journal of Agricultural and Applied Economics 40(2008):493–501.CrossRefGoogle Scholar
White, S.B., and Fane, S.A.. “Designing Cost Effective Water Demand Management Programs in Australia”. Water Science and Technology 46(2002):225–232.CrossRefGoogle Scholar
Worthington, A.C., and Hoffman, M.. “An Empirical Survey of Residential Water Demand Modeling”. Journal of Economic Surveys 22(2008):842–871.CrossRefGoogle Scholar