Assessing the efficiency of residential water demand: The role of information

Abstract In the current context of the pressures placed on available water resources, sustainable patterns of water consumption emerge as an important matter of concern. We assess the efficiency levels of households by considering a stochastic frontier analysis of the demand for water services using a representative sample from a city in northern Spain. Moreover, we study the impact of several correlates, such as information and water‐saving technologies on the efficient levels of water demand. We find that misinformation generates higher levels of wasted water than technological gaps. These findings show the importance of accurate information for optimal decision‐making.