We exploit sudden changes in the marginal tariff scheme to estimate the price elasticity of water demand using households' and firms' data in Tangerang Regency, a part of the Jakarta Greater Metropolitan Area, where water demand management is imperative due to the city's growing population and industrial activities. A monthly water consumption dataset at the consumer level is used in our study. Using the regression discontinuity in time (RDiT) approach, we find the price elasticity of water demand is −0.32 for household consumers and inelastic to changes in price. In contrast, elasticity for industrial and commercial consumers is −1.16, implying a more elastic response. The results raise concerns that firms substitute for a cheaper water source, endangering the water resources sustainability in the area.

我们利用边际电价方案的突然变化，利用雅加达大都市区一部分的坦格朗摄政区的住户和企业数据估算用水需求的价格弹性，由于该市人口不断增长，水的需求管理势在必行。工业活动。在我们的研究中使用了消费者级别的每月用水量数据集。使用时间回归不连续性（RDiT）方法，我们发现家庭消费者的用水需求价格弹性为−0.32，并且对价格变化无弹性。相比之下，工商业消费者的弹性为-1.16，这意味着更具弹性。结果引起了人们的担忧，即企业会替代廉价的水源，从而危害该地区的水资源可持续性。