Publication bias inflates water demand estimates, leading to inefficient resource allocation.
A study on water demand found that previous estimates of how much water people use are often too high because of biased data selection. By analyzing a range of studies, researchers discovered that the actual elasticity of water demand to price changes is lower than previously thought. Indoor water use is not very sensitive to price changes. Different factors like location, type of water use, and how the data was collected can affect how elastic water demand is. For example, in the southwestern US, the demand for water used in domestic irrigation is highly responsive to price changes.