Price Elasticity of Residential Water Demand Using Household
Five-Year-Every-Other-Month Data Before and After a Tariff Revision
Abstract
In this study, the price elasticity of water demand was estimated using
disaggregated data of approximately 30,000 households recorded over five
years: two years before and three years after a tariff revision. From
the results of the latent class analysis, the mean price elasticity was
-0.1. The households were divided into three groups: 35%–55% of the
households did not respond to the tariff revision, and households with
high water demand prior to the revision had higher elasticity. In
addition, no statistically significant difference was observed in
elasticity between the first and third years after revision.