"A study by Resources for the Future out on Wednesday found that restricting water use is considerably more effective. By analyzing water use from households in six northern California cities, researchers found that a policy of restricting outdoor water use cut overall demand by 13 percent. Water would have to be 50 percent more expensive to achieve the same reduction, raising annual water bills by $330 for the average household."
The Paddle: Allow only a glass half full, or charge more to fill it up?
Media Highlight from Politico — March 17, 2016
Conservation Policies: Who Responds to Price and Who Responds to Prescription?
Relative to price mechanisms, nonprice water conservation initiatives induce more equitable effects across income classes, while also yielding greater reductions among key “high-use” households.
Effective Water Demand Management: Prices vs. Restrictions
Economists love prices. But at what cost, theoretically, are we willing to raise the price of water to manage demand during periods of drought?