IMPACT ON RESIDENTIAL WATER CONSUMPTION OF AN INCREASING RATE STRUCTURE1

ABSTRACT: A two-step procedure is used to estimate the impact of an increasing rate structure on residential water use. An error components regression procedure is used to estimate demand relationships for a period prior to the rate change. Water use is predicted for the post rate change period, assuming that the rate structure was not changed. Comparison of actual with predicted use indicate that water use declined as a result of the imposition of the increasing rate structure.