Allocation-Based Water Pricing Promotes Conservation While Keeping User Costs Low

Ken Baerenklau, Kurt Schwabe, and Ariel Dinar

from ARE Update Vol. 17, No. 6, Jul/Aug, 2014

View Full Article PDF: Allocation-Based Water Pricing Promotes Conservation While Keeping User Costs Low

Abstract

A Southern California water district reduced household water demand by 10–15% by implementing an allocation-based price structure that did not significantly increase the average price paid for water.

Keywords

water rates, drought, conservation, block rate sturcture

Citation

Ken Baerenklau, Kurt Schwabe, and Ariel Dinar. "Allocation-Based Water Pricing Promotes Conservation While Keeping User Costs Low." ARE Update 17(6)(2014):1-4. University of California Giannini Foundation of Agricultural Economics.
https://giannini.ucop.edu/publications/are-update/issues/2014/17/6/allocation-based-water-pr/