Can Desert Dwellers Continue to Afford Lush Lawns: Analyzing Consumer Response to Rate Changes in Four Phoenix Suburbs

It is important for the state of Arizona and its neighbors to understand residential water demand as populations continue to grow. Part of this challenge is understanding how consumers respond to complex increasing block rate tariffs with fixed charges, and whether price increases can be an efficacious conservation strategy. Statistical tests are performed to determine to which price (marginal or average) consumers tend to respond, and to measure the magnitude of response. Previous studies assume that weather has the same effect on all households, but given the diversity of lot sizes this assumption is likely to be false. New variables are introduced to account for increased summer watering needs of larger lots and compared to the standard variables. Various demographic variables are tested for their relationship to water usage. Finally, the policy implications of the various results are discussed.

Kevin Ray_Masters Thesis.pdf (1.33 MB)

Author(s)

Publication Date