The simple analytics of Demand Hardening

The article begins by offering several definitions for the term “demand hardening” and states that demand hardening is said to occur as a result of longer‐term conservation measures (education, outdoor use restrictions, incentive and rebate programs, and price structure changes) that make it increas...

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Bibliographic Details
Published in:Journal - American Water Works Association 2007-10, Vol.99 (10), p.24-25
Main Authors: CHARLES W. (CHUCK) HOWE, GOEMANS, CHRISTOPHER
Format: Article
Language:English
Subjects:
Consumers
Cost control
Customer satisfaction
Demand
Drought
Elasticity of demand
Environmental conservation
manager to manager
Operating costs
Price elasticity
Price elasticity of demand
Residential Water Conservation
Restrictions
Water conservation
Water consumption
Water management
Water markets
Water Rates
Water resources
Water shortages
Water supply
Water Use
Water utilities
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Summary:The article begins by offering several definitions for the term “demand hardening” and states that demand hardening is said to occur as a result of longer‐term conservation measures (education, outdoor use restrictions, incentive and rebate programs, and price structure changes) that make it increasingly difficult for utilities to induce further reductions in water use during drought. As consumers take the least painful conservation steps, further cutbacks result in increased customer inconvenience and loss of satisfaction. For residential customers, cutbacks typically start with outdoor uses until valuable plants or trees become involved. At that point, in‐house cutbacks may be considered (Billings & Jones, 1996; Hall, 1996) as further restrictions or price increases are imposed.
ISSN:0003-150X
1551-8833
DOI:10.1002/j.1551-8833.2007.tb08052.x