| Abstract: | ABSTRACT: In this paper we examine the possible reasons why individuals who live in homes facing a flat monthly rate for water accept or reject an offer to have water metering devices installed at no cost to them. A logit model is used to model the discrete choice of acceptance. Since the demand for metering is directly tied to water demand, we estimate demand models for unmetered households in the Reno/Sparks metropolitan area using contingent data obtained by presenting households with hypothetical prices they might encounter under a metering system. Conditional logit and demand models are then used to examine the potential for metering to promote water conservation in the arid Reno/Sparks, Nevada metropolitan area. |
