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dc.titleResearch Insights: Do Consumers Respond to the Average or Marginal Price of Their Water Bills?
dc.contributor.authorTojal Ramos Dos Santos, Carolina
dc.contributor.authorMorais Guidetti, Bruna
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.date.available2025-08-29T00:08:00
dc.date.issue2025-08-29T00:08:00
dc.description.abstractConsumers do not adjust their water usage to stay just under the limits where the marginal price goes up in their water bills, suggesting they are not actively watching those thresholds to save money. Households consistently using water within the lowest bracket reduce their usage when fixed fees (and thus average prices) rise, even though their marginal price remains zero. Overall, consumers seem to base their decisions on the total average price rather than on the marginal price per unit, suggesting that policies and analyses should focus on average price responsiveness.
dc.format.extent4
dc.identifier.doihttp://dx.doi.org/10.18235/0013681
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Research-Insights-Do-Consumers-Respond-to-the-Average-or-Marginal-Price-of-Their-Water-Bills.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/spanish/document/Perspectivas-de-investigacion-responden-los-consumidores-al-precio-medio-o-marginal-de-sus-facturas-de-agua.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectWater and Sanitation
dc.subjectWater Consumption
dc.subjectDrinking Water
dc.subjectRating
dc.subjectAccess to Public Information
dc.subjectTariff System
dc.subjectCensus
dc.subjectSaving
dc.subjectWater Supply
dc.subjectRegulation
dc.subjectSewage
dc.subject.jelcodeL95 - Gas Utilities • Pipelines • Water Utilities
dc.subject.jelcodeQ25 - Water
dc.subject.jelcodeL51 - Economics of Regulation
dc.typeCatalogs and Brochures
idb.identifier.pubnumberIDB-CB-01094
idb.operationRG-K1415
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