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Does anybody like water restrictions? Some observation in Australian urban communities

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  • Cooper, Bethany
  • Rose, John
  • Crase, Lin

Abstract

Mandatory water restrictions continue to be the immediate response to urban water shortages in most major cities in southern Australia. Whilst generally rejected by economists on efficiency grounds, restrictions and the enforcement regimes used to invoke them are, nonetheless, viewed by some in the community as a positive way of dealing with water scarcity. Given the likelihood that urban water restrictions will persist for some time, there is value in understanding householders’ attitudes in this context. The impact and acceptability of differing approaches to enforcement is of particular interest, because this has wider ramifications for the administration of policy generally. This paper uses the results from a choice experiment to investigate the interplay between different components of a water restriction regime. In stark contrast to prevailing views that focus on the community benefits from ‘sharing the pain of water shortages’, results point to the significance of being able to inform on ones neighbours as a component of the enforcement regimes.

Suggested Citation

  • Cooper, Bethany & Rose, John & Crase, Lin, 2012. "Does anybody like water restrictions? Some observation in Australian urban communities," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(1), pages 1-21, March.
    • Handle: RePEc:ags:aareaj:204177
    DOI: 10.22004/ag.econ.204177
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    1. Nthambi, Mary & Markova-Nenova, Nonka & Wätzold, Frank, 2021. "Quantifying Loss of Benefits from Poor Governance of Climate Change Adaptation Projects: A Discrete Choice Experiment with Farmers in Kenya," Ecological Economics, Elsevier, vol. 179(C).
    2. Gill, David A. & Schuhmann, Peter W. & Oxenford, Hazel A., 2015. "Recreational diver preferences for reef fish attributes: Economic implications of future change," Ecological Economics, Elsevier, vol. 111(C), pages 48-57.
    3. Risius, Antje & Hamm, Ulrich, 2017. "Consumer segmentation based on attitudes - Does information change it all?," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258328, Agricultural and Applied Economics Association.
    4. Freebairn, John W., 2012. "Risk Aversion and Urban Water Decisions," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124206, Australian Agricultural and Resource Economics Society.
    5. Bethany Cooper & Michael Burton & Lin Crase, 2023. "Exploring customer heterogeneity with a scale‐extended latent class choice model: Experimental evidence drawn from urban water users," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(2), pages 176-197, April.
    6. Bethany Cooper & Michael Burton & Lin Crase, 2019. "Willingness to Pay to Avoid Water Restrictions in Australia Under a Changing Climate," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(3), pages 823-847, March.
    7. Vorlaufer, Tobias & Falk, Thomas & Dufhues, Thomas & Kirk, Michael, 2017. "Payments for ecosystem services and agricultural intensification: Evidence from a choice experiment on deforestation in Zambia," Ecological Economics, Elsevier, vol. 141(C), pages 95-105.
    8. Soliman, Adam, 2022. "Prescriptive drought policy and water supplier compliance," Ecological Economics, Elsevier, vol. 197(C).
    9. Nthambi, Mary & Wätzold, Frank & Markova-Nenova, Nonka, 2018. "Quantifying benefit losses from poor governance of climate change adaptation projects: A discrete choice experiment with farmers in Kenya," MPRA Paper 94678, University Library of Munich, Germany.
    10. John Freebairn, 2013. "Imperfect Knowledge and Urban Water Decisions," Economic Papers, The Economic Society of Australia, vol. 32(1), pages 32-40, March.
    11. Nicholas Pawsey & Lin Crase, 2013. "The Mystique of Water Pricing and Accounting," Economic Papers, The Economic Society of Australia, vol. 32(3), pages 328-339, September.
    12. Hyojae Jung & Chanjin Chung, 2024. "Consumers’ WTP for Sustainability Turfgrass Attributes with Consideration of Aesthetic Attributes and Water Conservation Policies," Agriculture, MDPI, vol. 14(1), pages 1-16, January.
    13. Manhique, Henrique & Wätzold, Frank, 2023. "Effects of Institutional Setting on Value Estimates of Stated Preference Surveys in Developing Economies: A Discrete Choice Experiment on Conserving Biodiversity in The Cape Floristic Region," MPRA Paper 118750, University Library of Munich, Germany.
    14. Markova-Nenova, Nonka & Wätzold, Frank, 2018. "Fair to the cow or fair to the farmer? The preferences of conventional milk buyers for ethical attributes of milk," Land Use Policy, Elsevier, vol. 79(C), pages 223-239.
    15. Cooper, Bethany & Crase, Lin, 2016. "Governing water service provision: Lessons from Australia," Utilities Policy, Elsevier, vol. 43(PA), pages 42-47.
    16. Bethany Cooper, 2017. "What drives compliance? An application of the theory of planned behaviour to urban water restrictions using structural equation modelling," Applied Economics, Taylor & Francis Journals, vol. 49(14), pages 1426-1439, March.

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