Arbeitspapier
Turn off the faucet: Solving excess water consumption with individual meters
When consumption of water and other utilities is measured collectively and payment for such services is equally shared among members of the group, individuals may use more than what is socially optimal. In this paper, we evaluate how installation of individual meters affects water consumption. Using rich administrative data from the public water utility company in Quito, Ecuador, it is estimated that water consumption decreases by about 8% as a result of the introduction of individual metering. The effect is large and economically significant: in order to obtain the same effect prices would have to double. Individual water metering could be a useful tool to curve down consumption in both developing and developed countries.
- Language
-
Englisch
- Bibliographic citation
-
Series: IDB Working Paper Series ; No. IDB-WP-1152
- Classification
-
Wirtschaft
Consumer Economics: Empirical Analysis
Externalities
Renewable Resources and Conservation: Demand and Supply; Prices
Renewable Resources and Conservation: Water
Environmental Economics: Government Policy
- Subject
-
Water consumption
Commons problem
Institutions
Individual meters
Price elasticity
Regression discontinuity
Difference-in-difference
- Event
-
Geistige Schöpfung
- (who)
-
Carrillo, Paul E.
Contreras, Ivette
Scartascini, Carlos G.
- Event
-
Veröffentlichung
- (who)
-
Inter-American Development Bank (IDB)
- (where)
-
Washington, DC
- (when)
-
2021
- DOI
-
doi:10.18235/0003719
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Carrillo, Paul E.
- Contreras, Ivette
- Scartascini, Carlos G.
- Inter-American Development Bank (IDB)
Time of origin
- 2021
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