{"title":"Turning Water Into … An Urban Spatial Model With Water as an Input","authors":"Juan Carlos Lopez","doi":"10.1111/grow.70042","DOIUrl":null,"url":null,"abstract":"<div>\n \n <p>This paper incorporates water demand decisions by households and firms into an urban spatial model. Using both land-use and water demand data from the Denver Water service area, I calibrate the model to focus on four policy options to reduce urban water demand: (1) a “cash-for-grass” proposal to reduce irrigated lawn area, (2) relaxing development regulations to increase housing supply, (3) lowering the price of recycled water, and (4) raising the marginal price of potable water. The “cash-for-grass” policy reduces water demand, yet the policy is both costly and leads to an increase in the average household yard size. Loosening development regulations may lead to either a rise or fall in aggregate water demand. Lowering the price of recycled water increases demand by firms but lowers revenue for the water district. Numerical simulations suggest that raising marginal water rates are the most effective means of reducing aggregate water demand.</p>\n </div>","PeriodicalId":47545,"journal":{"name":"Growth and Change","volume":"56 3","pages":""},"PeriodicalIF":2.1000,"publicationDate":"2025-07-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Growth and Change","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/grow.70042","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"DEVELOPMENT STUDIES","Score":null,"Total":0}
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Abstract
This paper incorporates water demand decisions by households and firms into an urban spatial model. Using both land-use and water demand data from the Denver Water service area, I calibrate the model to focus on four policy options to reduce urban water demand: (1) a “cash-for-grass” proposal to reduce irrigated lawn area, (2) relaxing development regulations to increase housing supply, (3) lowering the price of recycled water, and (4) raising the marginal price of potable water. The “cash-for-grass” policy reduces water demand, yet the policy is both costly and leads to an increase in the average household yard size. Loosening development regulations may lead to either a rise or fall in aggregate water demand. Lowering the price of recycled water increases demand by firms but lowers revenue for the water district. Numerical simulations suggest that raising marginal water rates are the most effective means of reducing aggregate water demand.
期刊介绍：
Growth and Change is a broadly based forum for scholarly research on all aspects of urban and regional development and policy-making. Interdisciplinary in scope, the journal publishes both empirical and theoretical contributions from economics, geography, public finance, urban and regional planning, agricultural economics, public policy, and related fields. These include full-length research articles, Perspectives (contemporary assessments and views on significant issues in urban and regional development) as well as critical book reviews.
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