An Analysis of the Effect of Price on Residential Water Demand: Metropolitan Miami, Florida*

INTRODUCTION During 1970, the amount of ground water pumped in the southern and southeastern sections The economic development of any area is tied of Florida (which includes Broward, Dade and to its natural resource base. Water, one of the most Palm Beach counties) for municipal water use was important of these natural resources, is used for a 121 billion gallons. multitude of purposes including crop irrigation, With increased urbanization in Dade County, human consumption, food processing, generation human consuption the problem of allocating water among its alternaof electricity, transportation, recreation and waste te e beome moe te. r is copeti. ^ ^ ' tive uses becomes more acute. There is competidisposal. disposal tion among municipal demands, agricultural deMunicipal water use is essential in the developmands and those of the Everglades National Park. ment of any state. Florida is no exception. One of Within the municipal demand for water, there is the first considerations in development of an area's competition among residential, commercial, induswater resources is that of furnishing municipal trial and governmental uses. water for commercial, industrial, residential and r r C Total water use for Dade County in 1970 was public uses. public ureases. id a fr h r285 million gallons per day (104 billion gallons Increases in demand for fresh water because of annually). Irrigation usage was estimated to be 45 economic and population growth are currently bem n alons per day (g, rura use 1 g ing observed in various areas of Florida. In most an industrial use 10 mgd. The major use, howand industrial use 10 mgd. The major use, howareas, water for municipal supply is currently adeestimated at 212 mgd [3 quate; however, with continued increases in deands shortage and possible deterioration in To obtain greater insight into uses of water in mands, shortage and possible 'deterioration in water quality could occur [4]. Among areas where Dade County demand for water by each class of use must be thoroughly understood; this study anapressure will be greatest on water resources is the thro ly underood i uy southeastern coastal section of the state (primarily residential use of water Dade County during 1973 as an effort to contribute to this the Miami Metropolitan area). understanding.