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Do Consumers React to the Shape of Supply? Water Demand under Heterogeneous Price Structures AgEcon
Olmstead, Sheila M.; Hanemann, W. Michael; Stavins, Robert N..
Urban water pricing provides an opportunity to examine whether consumers react to the shape of supply functions. We carry out an empirical analysis of the influence of price and price structure on residential water demand, using the most price-diverse, detailed, household-level water demand data yet available for this purpose. We adapt the Hausman model of labor supply under progressive income taxation to estimate water demand under non-linear prices. Ours is the first analysis to address both the simultaneous determination of marginal price and water demand under block pricing and the possibility of endogenous price structures in the cross section. In order to examine the possibility that consumers facing block prices are more price-responsive, all else...
Tipo: Working or Discussion Paper Palavras-chave: Non-linear pricing; Water demand; Price elasticity; Resource /Energy Economics and Policy; D12; Q21; Q25; Q28; L95.
Ano: 2005 URL: http://purl.umn.edu/10672
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Comparing Price and Non-price Approaches to Urban Water Conservation AgEcon
Olmstead, Sheila M.; Stavins, Robert N..
Urban water conservation is typically achieved through prescriptive regulations, including the rationing of water for particular uses and requirements for the installation of particular technologies. A significant shift has occurred in pollution control regulations toward market-based policies in recent decades. We offer an analysis of the relative merits of market-based and prescriptive approaches to water conservation, where prices have rarely been used to allocate scarce supplies. The analysis emphasizes the emerging theoretical and empirical evidence that using prices to manage water demand is more cost-effective than implementing non-price conservation programs, similar to results for pollution control in earlier decades. Price-based approaches also...
Tipo: Working or Discussion Paper Palavras-chave: Cost-effectiveness; Water Conservation; Market-based Approaches; Policy Instrument Choice; Water Price; Q25; Q28; Q58; L95.
Ano: 2008 URL: http://purl.umn.edu/42919
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Three Key Elements of Post-2012 International Climate Policy Architecture AgEcon
Olmstead, Sheila M.; Stavins, Robert N..
We describe three essential elements of an effective post-2012 international global climate policy architecture: a means to ensure that key industrialized and developing nations are involved in differentiated but meaningful ways; an emphasis on an extended time path of targets; and inclusion of flexible market-based policy instruments to keep costs down and facilitate international equity. This architecture is consistent with fundamental aspects of the science, economics, and politics of global climate change; addresses specific shortcomings of the Kyoto Protocol; and builds upon the foundation of the United Nations Framework Convention on Climate Change.
Tipo: Working or Discussion Paper Palavras-chave: Global Climate Change; Global Warming; Policy Architecture; Kyoto Protocol; Environmental Economics and Policy; Q54; Q58; Q48; Q39.
Ano: 2010 URL: http://purl.umn.edu/93412
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