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Does anybody give a dam? The importance of public awareness for urban water conservation during drought

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  • Aisbett, Emma
  • Steinhauser, Ralf

Abstract

Demand management has been of interest in dry climates such as Australia, Spain and the Western United States for decades. It is particularly important to understand policy options during drought conditions, as drought periods have a disproportionate effect on supply infrastructure decisions. While water‐conservation campaigns aimed at inducing voluntary consumption reductions are almost universally employed by water managers in times of supply constraint, voluntary measures are generally dismissed in the economics literature as ineffective. We argue that the robust positive correlation between dam levels and consumption after controlling for policy changes suggests that there is a significant component of voluntary conservation. Furthermore, omitting dam levels from regressions may bias estimated impacts of policy changes.

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Bibliographic Info

Paper provided by Australian National University, Environmental Economics Research Hub in its series Research Reports with number 107850.

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Date of creation: 2011
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Handle: RePEc:ags:eerhrr:107850

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Keywords: water use; demand management; pricing; behavioral aspects; Community/Rural/Urban Development; Environmental Economics and Policy;

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References

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  1. Patrick Troy & Darren Holloway, 2004. "The use of residential water consumption as an urban planning tool: a pilot study in Adelaide," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 47(1), pages 97-114.
  2. Mary E. Renwick & Sandra O. Archibald, 1998. "Demand Side Management Policies for Residential Water Use: Who Bears the Conservation Burden?," Land Economics, University of Wisconsin Press, vol. 74(3), pages 343-359.
  3. Grafton, R. Quentin & Kompas, Tom & To, Hang & Ward, Michael B., 2009. "Residential Water Consumption: A Cross Country Analysis," Research Reports 94823, Australian National University, Environmental Economics Research Hub.
  4. Renwick, Mary E. & Green, Richard D., 2000. "Do Residential Water Demand Side Management Policies Measure Up? An Analysis of Eight California Water Agencies," Journal of Environmental Economics and Management, Elsevier, vol. 40(1), pages 37-55, July.
  5. R. Quentin Grafton & Michael B. Ward, 2008. "Prices versus Rationing: Marshallian Surplus and Mandatory Water Restrictions," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages S57-S65, 09.
  6. R. G. Taylor & John R. McKean & Robert A. Young, 2004. "Alternate Price Specifications for Estimating Residential Water Demand with Fixed Fees," Land Economics, University of Wisconsin Press, vol. 80(3), pages 463-475.
  7. R. Quentin Grafton & Tom Kompas, 2007. "Pricing Sydney water ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(3), pages 227-241, 09.
  8. Jasper M. Dalhuisen & Raymond J. G. M. Florax & JHenri L. F. de Groot & Peter Nijkamp, 2003. "Price and Income Elasticities of Residential Water Demand: A Meta-Analysis," Land Economics, University of Wisconsin Press, vol. 79(2), pages 292-308.
  9. Sheila Olmstead & W. Michael Hanemann & Robert N. Stavins, 2007. "Water Demand Under Alternative Price Structures," NBER Working Papers 13573, National Bureau of Economic Research, Inc.
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Cited by:
  1. Emma Aisbett & Ralf Steinhauser, 2011. "Maintaining the Common Pool: Voluntary Water Conservation in Response to Increasing Scarcity," ANU Working Papers in Economics and Econometrics 2011-554, Australian National University, College of Business and Economics, School of Economics.

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