Determinants of household water conservation retrofit activity: A discrete choice model using survey data

Abstract

Economic analyses of residential water demand have typically concentrated on price and income elasticities. In the short run a substantial change in water prices might induce only small changes in consumption levels. As time passes, however, households will have the opportunity to “retrofit” existing water‐using equipment to make it less water‐intensive. This produces medium‐ to long‐run demand elasticities that are higher than short‐run studies suggest. We examine responses to water conservation questions appearing on the Los Angeles Department of Water and Power’s 1983 residential energy survey. We find that households’ decisions to install shower retrofit devices are influenced by the potential to save money on water heating bills. We attribute toilet retrofit decisions more to noneconomic factors which might be characterized as “general conservation mindedness.”