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dc.titleTurn Off the Faucet: Solving Excess Water Consumption with Individual Meters
dc.contributor.authorContreras, Ivette
dc.contributor.authorCarrillo, Paul E.
dc.contributor.authorScartascini, Carlos
dc.contributor.editorBasani, Marcello
dc.contributor.editorDe Simone, Francesco
dc.contributor.orgunitWater and Sanitation Division
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageEcuador
dc.date.available2021-10-20T00:00:00
dc.date.issue2021-10-20T00:00:00
dc.description.abstractWhen consumption of water and other utilities is measured collectively and payment for 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 installation of individual meters affects water consumption. Using rich administrative data from the public water utility company in Quito, Ecuador, it is estimated that water consumption decreases by about 8% as a result of the introduction of individual metering. The effect is large and economically significant: in order to obtain the same effect prices would have to double. Individual water metering could be a useful tool to curve down consumption in both developing and developed countries.
dc.format.extent31
dc.identifier.doihttp://dx.doi.org/10.18235/0003719
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Turn-Off-the-Faucet-Solving-Excess-Water-Consumption-with-Individual-Meters.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectEconomy
dc.subjectWater Consumption
dc.subjectWater and Sanitation
dc.subjectWater Utilities
dc.subject.jelcodeD12 - Consumer Economics: Empirical Analysis
dc.subject.jelcodeD62 - Externalities
dc.subject.jelcodeQ21 - Demand and Supply • Prices
dc.subject.jelcodeQ25 - Water
dc.subject.jelcodeQ58 - Government Policy
dc.subject.keywordsWater consumption;Commons problem;Individualmeters;Price elasticity;Difference-in-difference
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01152
idb.operationRG-T3411
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