A discrete/continuous choice approach to residential water demand under block rate pricing

J. A. Hewitt, William Hanemann

Research output: Chapter in Book/Report/Conference proceedingChapter

201 Scopus citations

Abstract

A discrete/continuous choice model of the residential demand for water under block rate pricing is presented, estimated, and compared to results of regression models. The empirical analysis uses a dataset from a previously published study, Nieswiadomy and Molina (1989), of household level panel data from Denton, Texas, for summer months from 1981 to 1985 with an increasing block rate in effect. The striking result is that the discrete/continuous choice model produces price elasticity estimates near -1.6, which are much more elastic than previously published results based on regression models where the discrete choice is not explicitly modeled. -Authors

Original languageEnglish (US)
Title of host publicationLand Economics
Pages173-192
Number of pages20
Volume71
Edition2
StatePublished - 1995
Externally publishedYes

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ASJC Scopus subject areas

  • Environmental Science(all)
  • Earth and Planetary Sciences(all)

Cite this

Hewitt, J. A., & Hanemann, W. (1995). A discrete/continuous choice approach to residential water demand under block rate pricing. In Land Economics (2 ed., Vol. 71, pp. 173-192)