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The welfare costs of urban outdoor water restrictions

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  • Donna Brennan
  • Sorada Tapsuwan
  • Gordon Ingram
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    Abstract

    Outdoor water restrictions are usually implemented as bans on a particular type of watering technology (sprinklers), which allow households to substitute for labour-intensive (hand-held) watering. This paper presents a household production model approach to analysing the impact of sprinkler restrictions on consumer welfare and their efficacy as a demand management tool. Central to our empirical analysis is an experimentally derived production function which describes the relationship between irrigation and lawn quality. We demonstrate that for a typical consumer complete sprinkler bans may be little more effective than milder restrictions policies, but are substantially more costly to the household. Copyright 2007 The Authors Journal Compilation 2007 Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishers Ltd .

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    Bibliographic Info

    Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

    Volume (Year): 51 (2007)
    Issue (Month): 3 (09)
    Pages: 243-261

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    Handle: RePEc:bla:ajarec:v:51:y:2007:i:3:p:243-261

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    Cited by:
    1. Sheila M. Olmstead, 2010. "The Economics of Managing Scarce Water Resources," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(2), pages 179-198, Summer.
    2. Sheila M. Olmstead & Robert N. Stavins, 2008. "Comparing Price and Non-Price Approaches to Urban Water Conservation," NBER Working Papers 14147, National Bureau of Economic Research, Inc.
    3. Mansur, Erin T. & Olmstead, Sheila M., 2012. "The value of scarce water: Measuring the inefficiency of municipal regulations," Journal of Urban Economics, Elsevier, vol. 71(3), pages 332-346.
    4. Anita Castledine & Klaus Moeltner & Michael Price & Shawn Stoddard, 2014. "Free to Choose: Promoting Conservation by Relaxing Outdoor Watering Restrictions," NBER Working Papers 20362, National Bureau of Economic Research, Inc.
    5. Parvin Mahmoudi & Darla Hatton MacDonald & Neville D. Crossman & David M. Summers & John van der Hoek, 2013. "Space matters: the importance of amenity in planning metropolitan growth," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 57(1), pages 38-59, 01.
    6. R. Quentin Grafton & Michael B. Ward, 2008. "Prices versus Rationing: Marshallian Surplus and Mandatory Water Restrictions," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 84(s1), pages S57-S65, 09.
    7. Hughes, Neal & Hafi, Ahmed & Goesch, Tim, 2009. "Urban water management: optimal price and investment policy under climate variability," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 53(2), June.
    8. Productivity Commission, 2008. "Towards Urban Water Reform: A Discussion Paper," Research Papers, Productivity Commission, Government of Australia 0801, Productivity Commission, Government of Australia.
    9. Amit K. Bhandari & Almas Heshmati, 2009. "Willingness to Pay for Biodiversity Conservation," TEMEP Discussion Papers, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP) 200938, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Dec 2009.
    10. Freebairn, John W., 2012. "Risk Aversion and Urban Water Decisions," 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia, Australian Agricultural and Resource Economics Society 124206, Australian Agricultural and Resource Economics Society.
    11. Neil Byron & Alan Johnston & Rick Baker & Andrew Barker, 2008. "Towards Urban Water Reform," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 41(4), pages 401-412, December.
    12. Byrnes, Joel & Crase, Lin & Dollery, Brian & Villano, Renato, 2010. "The relative economic efficiency of urban water utilities in regional New South Wales and Victoria," Resource and Energy Economics, Elsevier, Elsevier, vol. 32(3), pages 439-455, August.
    13. Dupont, Diane P., 2011. "Reclaimed Wastewater and the WTP to avoid Summer Water Restrictions: Incorporation Endogenous Free-riding Beliefs," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK, Agricultural Economics Society 108778, Agricultural Economics Society.
    14. John Freebairn, 2013. "Imperfect Knowledge and Urban Water Decisions," Economic Papers, The Economic Society of Australia, The Economic Society of Australia, vol. 32(1), pages 32-40, 03.
    15. Hughes, Neal & Hafi, Ahmed & Goesch, Tim & Brownlowe, Nathan, 2008. "Urban water management: optimal price and investment policy under uncertainty," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia, Australian Agricultural and Resource Economics Society 6005, Australian Agricultural and Resource Economics Society.
    16. Neal Hughes & Ahmed Hafi & Tim Goesch, 2009. "Urban water management: optimal price and investment policy under climate variability ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 53(2), pages 175-192, 04.

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