UC Davis

With escalating global water scarcity and increasing pressures on freshwater resources, demand-side management has emerged as a crucial tool for sustainable water resource management. This paper reviews residential, demand-side water management strategies, focusing primarily on price mechanisms. We trace the evolution of price structures and attempts to estimate consumer responses under these structures, highlighting the methodological and practical difficulties with estimating elasticity under non-linear billing structures. We also include a tertiary review of previous research into non-pecuniary strategies, such as restrictions, and information/education campaigns. This review serves as a primer for policymakers, water managers, and researchers seeking to design and evaluate demand-side management in residential water use.