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Not your typical rate structure change: Heterogeneous water demand responses
Water Resources and Economics ( IF 2.2 ) Pub Date : 2021-08-01 , DOI: 10.1016/j.wre.2021.100183
B. Stitzel 1 , C.L. Rogers 2
Affiliation  

This paper investigates behavioral responses to a complicated and peculiar change in a municipality's water rate structure. In 2006, the City of Norman, Oklahoma Water Utility added a four-dollar fixed fee, reduced the number of block-rate tiers, and changed the rate structure from one that decreased and then increased across higher consumption block groups, to a strictly increasing rate structure. The changes in the volumetric rates were not uniform across the block rates. Customers at ultra-low volumes of consumption faced a one-penny reduction in their volumetric rate but experienced a large increase in total and average cost of water due to the addition of the relatively large fixed fee. In contrast, higher-volume users faced a less severe increase in the total and average charge per gallon consumed. To address the co-determination of average water charge and consumption choice, we estimate separate regressions for households grouped by pre-price change demand and the block group of last gallon consumed. Using detailed, monthly panel data for 23,408 residential water customers from 2002 to 2010 and a variety of model specifications, our results highlight heterogeneous responses across consumption groups. Ultra-low users responded to the price-regime change by increasing consumption whereas higher-volume users reduced consumption. Behavioral responses were found to be greater in the longer-run than shorter-run as expected.



中文翻译:

不是典型的费率结构变化:异构用水需求响应

本文研究了对市政水费结构中复杂而奇特的变化的行为反应。2006 年,俄克拉荷马州诺曼市自来水公司增加了 4 美元的固定费用,减少了块费率等级的数量,并将费率结构从在较高消费块组中先下降然后增加的费率结构改变为严格增加费率结构。体积速率的变化在块速率中不均匀。超低消费量的客户面临着他们的体积费率降低一分钱,但由于增加了相对较大的固定费用,水的总成本和平均成本大幅增加。相比之下,大容量用户面临的每加仑消耗的总费用和平均费用的增长不太严重。为了解决平均水费和消费选择的共同决定问题,我们估计了按价格变化前需求分组的家庭和最后一加仑消费的块组的单独回归。使用 2002 年至 2010 年 23,408 名住宅用水客户的详细月度面板数据和各种模型规格,我们的结果突出了不同消费群体的异质反应。超低消费用户通过增加消费来应对价格体系变化,而高消费用户减少消费。正如预期的那样,长期运行的行为反应比短期运行的要大。从 2002 年到 2010 年的 408 家住宅用水客户和各种型号规格,我们的结果突出了不同消费群体的不同反应。超低消费用户通过增加消费来应对价格制度变化,而高消费用户减少消费。正如预期的那样,长期运行的行为反应比短期运行的要大。从 2002 年到 2010 年的 408 家住宅用水客户和各种型号规格,我们的结果突出了不同消费群体的不同反应。超低消费用户通过增加消费来应对价格体系变化,而高消费用户减少消费。正如预期的那样,长期运行的行为反应比短期运行的要大。

更新日期:2021-08-24
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