Price elasticity of residential demand for water: A meta-analysis

Meta‐analysis is used to determine if there are factors that systematically affect price elasticity estimates in studies of residential water demand in the United States. An econometric model is estimated, using price elasticity estimates from previous studies as the dependent variable. Explanatory variables include functional form, cross‐sectional versus time series, water price specification, rate structure, location, season, and estimation technique. Inclusion of income, rainfall, and evapotranspiration are all found to influence the estimate of the price elasticity. Population density, household size, and temperature do not significantly influence the estimate of the price elasticity. Pricing structure and season are also found to significantly influence the estimate of the price elasticity.