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The value of scarce water : measuring the inefficiency of municipal regulations

Author: Erin Mansur; Sheila M Olmstead; National Bureau of Economic Research.
Publisher: Cambridge, Mass. : National Bureau of Economic Research, 2007.
Series: Working paper series (National Bureau of Economic Research), no. 13513.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
Rather than allowing water prices to reflect scarcity rents during periods of drought-induced excess demand, policy makers have mandated command-and-control approaches, like the curtailment of certain uses, primarily outdoor watering. Using unique panel data on residential end-uses of water, we examine the welfare implications of typical drought policies. Using price variation across and within markets, we identify  Read more...
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Additional Physical Format: Print version:
Mansur, Erin.
Value of scarce water.
Cambridge, Mass. : National Bureau of Economic Research, 2007
(OCoLC)180212646
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Erin Mansur; Sheila M Olmstead; National Bureau of Economic Research.
OCLC Number: 174496432
Reproduction Notes: Electronic reproduction. [S.l.] : HathiTrust Digital Library, 2011. MiAaHDL
Description: 1 online resource (1 volume).
Details: Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.
Series Title: Working paper series (National Bureau of Economic Research), no. 13513.
Responsibility: Erin T. Mansur, Sheila M. Olmstead.

Abstract:

Rather than allowing water prices to reflect scarcity rents during periods of drought-induced excess demand, policy makers have mandated command-and-control approaches, like the curtailment of certain uses, primarily outdoor watering. Using unique panel data on residential end-uses of water, we examine the welfare implications of typical drought policies. Using price variation across and within markets, we identify end-use specific price elasticities. Our results suggest that current policies target water uses that households, themselves, are most willing to forgo. Nevertheless, we find that use restrictions have costly welfare implications, primarily due to household heterogeneity in willingness-to-pay for scarce water.

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