Paul E. Carrillo , Ivette Contreras , Carlos Scartascini
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引用次数: 0
Abstract
When consumption of water and other utilities is measured collectively for many households and the payment of 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 the installation of individual meters affects water consumption. Using administrative data from the public water utility company in Quito, Ecuador, and an event study approach, it is estimated that water consumption decreases by about 20% as a result of the introduction of individual metering. The effect is large and economically significant: in order to obtain the same effect using the price mechanism in Quito, prices would have to increase by at least 66%. Individual water metering could be a useful tool to curve down consumption in both developing and developed countries.
期刊介绍：
The Journal of Environmental Economics and Management publishes theoretical and empirical papers devoted to specific natural resources and environmental issues. For consideration, papers should (1) contain a substantial element embodying the linkage between economic systems and environmental and natural resources systems or (2) be of substantial importance in understanding the management and/or social control of the economy in its relations with the natural environment. Although the general orientation of the journal is toward economics, interdisciplinary papers by researchers in other fields of interest to resource and environmental economists will be welcomed.
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