national multiple family submetering and allocation billing program ...

Table 6.7 Elasticity values, analysis #2 (submetering rates)
Price ($/kgal)
Straight Line Model Power Curve Model
Elasticity
Elasticity
1.05 -0.02 -0.16
2.03 -0.04 -0.16
2.03 -0.04 -0.16
2.03 -0.04 -0.16
2.07 -0.04 -0.16
2.07 -0.04 -0.16
2.12 -0.04 -0.16
2.25 -0.04 -0.16
2.26 -0.04 -0.16
2.39 -0.04 -0.16
2.87 -0.05 -0.16
3.85 -0.07 -0.16
3.85 -0.07 -0.16
4.13 -0.08 -0.16
5.03 -0.09 -0.16
5.76 -0.11 -0.16
5.97 -0.11 -0.16
6.04 -0.11 -0.16
6.45 -0.12 -0.16
7.00 -0.13 -0.16
7.05 -0.14 -0.16
7.27 -0.14 -0.16
7.85 -0.15 -0.16
8.53 -0.17 -0.16
10.51 -0.22 -0.16
15.40 -0.35 -0.16
Conclusion: Likely elasticity range = -0.07 to –0.16
Policy Implications of Price Elasticity Analyses
The results of the elasticity analysis indicate that multi-family dwelling owners and
managers are significantly more responsive to price than are residents who are submetered
because the calculated percent difference in price elasticity is larger in the utility rate analysis by
70% or more. This result suggests that property owners are more likely to take action to
conserve water on their properties in response to a change in price. It also implies that the
owners have more opportunities to conserve water because they have a wider variety of uses
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