Research Insights: Can Water Use Be Reduced through Policies that Promote Individual Metering of Water Consumption?

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Peer Reviewed icon Peer Reviewed
Date issued
Nov 2023
Subject
Public Policy;
Water and Sanitation;
Water Consumption;
Water Supply;
Potable Water;
Regression Discontinuity Design;
Water Use;
Climate Change;
Rating;
Difference-in-Difference Method;
Nudge;
Public Health;
Emerging Market
JEL code
D12 - Consumer Economics: Empirical Analysis;
D62 - Externalities;
Q21 - Demand and Supply • Prices;
Q25 - Water;
Q58 - Government Policy
Country
Ecuador
Category
Catalogs and Brochures
Using administrative data from the Empresa Pública de Agua y Saneamiento (EPMAPS) of Quito, Ecuador, it is found that water consumption decreases by approximately 8 percentage points (pp) after the introduction of individual meters. To obtain an equivalent drop of 8 pp in water consumption, but without individual meters, water consumption prices would have to be doubled. Individual water meters could be a useful tool for reducing water consumption in both developing and developed countries.