Abstract
Models of water consumption by rice producers are conceptualized and then estimated using cross‐sectional time series data obtained from 16 Texas canal operators for the years 1977–1982. Two alternative econometric models demonstrate that both volumetric and flat rate water charges are strongly and inversely related to agricultural water consumption. Nonprice conservation incentives accompanying flat rates are hypothesized to explain the negative correlation of flat rate charges and water consumption. Application of these results suggests that water supply organizations in the sample population converting to volumetric pricing will generally reduce water consumption.
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