Global climate change may affect the long-term availability and short-term variability of water resources, but the impacts on regional water supplies are tremendously uncertain.
In a new research project, ENRP Faculty Chair Robert Stavins and Fellow Sheila Cavanagh are working with Michael Hanemann of the University of California, Berkeley, to analyze water system flexibility by estimating econometrically the effects of higher prices, alternative price structures, and nonprice utility conservation policies on water demand in twelve U.S. cities.
This research will assess the potential of price and non-price water conservation policies as climate change response strategies and scarcity management tools. The results will provide information critical to utilities, governments and the public at large, who face increased variability and scarcity of water resources due to climate change.