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Article

Heterogeneity and Temporal Stability of Residential Water Use Responsiveness to Price Change

Department of Civil and Environmental Engineering, Faculty of Science and Engineering, Chuo University, Tokyo 112-8551, Japan
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Academic Editors: Sathaa Sathavisan and Oz Sahin
Water 2021, 13(17), 2329; https://doi.org/10.3390/w13172329
Received: 14 June 2021 / Revised: 19 August 2021 / Accepted: 24 August 2021 / Published: 25 August 2021
Many papers estimate the price elasticity of water demand. However, heterogeneity and temporal variation of price elasticity of residential water use are still unclear. We analyze these issues by applying the latent class analysis and t-test using disaggregated data of approximately 30,000 households recorded over five years: Two years before and three years after a tariff revision. As a result, the households are divided into three (heterogeneous) groups: About 5% of them responded to the price change sensitively, 40–60% slightly, and 35–55% not at all. Households with high water use prior to the revision had higher price elasticity. In addition, the price elasticity in the first and third years after the revision was the same. View Full-Text
Keywords: heterogeneity; temporal stability; price elasticity; residential water use; latent class heterogeneity; temporal stability; price elasticity; residential water use; latent class
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MDPI and ACS Style

Tanishita, M.; Sunaga, D. Heterogeneity and Temporal Stability of Residential Water Use Responsiveness to Price Change. Water 2021, 13, 2329. https://doi.org/10.3390/w13172329

AMA Style

Tanishita M, Sunaga D. Heterogeneity and Temporal Stability of Residential Water Use Responsiveness to Price Change. Water. 2021; 13(17):2329. https://doi.org/10.3390/w13172329

Chicago/Turabian Style

Tanishita, Masayoshi, and Daisuke Sunaga. 2021. "Heterogeneity and Temporal Stability of Residential Water Use Responsiveness to Price Change" Water 13, no. 17: 2329. https://doi.org/10.3390/w13172329

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