Maintaining the Common Pool: Voluntary Water Conservation in Response to Increasing Scarcity
AbstractWater is a classic common pool resource, especially during drought. This paper studies the impact of changing storage levels on urban water usage in the context of a prolonged drought and an extensive public information campaign which emphasized communal responsibility for maintaining ‘dam levels’. We identify a substantial voluntary conservation response to changing storage levels. The paper thus contributes a rare piece of real-world, behavioral evidence that voluntary conservation varies with the need for such action. Our findings also imply that estimates of price elasticity may be biased and welfare costs of mandatory restrictions may be overstated in many studies.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Crawford School of Public Policy, The Australian National University in its series Crawford School Research Papers with number 1111.
Length: 18 pages
Date of creation: Sep 2011
Date of revision:
Contact details of provider:
Postal: Crawford Building, Lennox Crossing, Building #132, Canberra ACT 0200
Phone: +61 2 6125 4705
Fax: +61 2 6125 5448
Web page: https://crawford.anu.edu.au/research/crwf_ssrn/
More information through EDIRC
common pool resources; voluntary conservation; warm glow; water use; demand management;
Other versions of this item:
- 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.
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
- Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
This paper has been announced in the following NEP Reports:
- NEP-AGR-2012-01-25 (Agricultural Economics)
- NEP-ALL-2012-01-25 (All new papers)
- NEP-ENV-2012-01-25 (Environmental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- R. M. Isaac & J. M. Walker, 2010.
"Group size effects in public goods provision: The voluntary contribution mechanism,"
Levine's Working Paper Archive
310, David K. Levine.
- Isaac, R Mark & Walker, James M, 1988. "Group Size Effects in Public Goods Provision: The Voluntary Contributions Mechanism," The Quarterly Journal of Economics, MIT Press, vol. 103(1), pages 179-99, February.
- Olmstead, Sheila M. & Michael Hanemann, W. & Stavins, Robert N., 2007.
"Water demand under alternative price structures,"
Journal of Environmental Economics and Management,
Elsevier, vol. 54(2), pages 181-198, September.
- 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.
- 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.
- Greg Halich & Kurt Stephenson, 2009. "Effectiveness of Residential Water-Use Restrictions under Varying Levels of Municipal Effort," Land Economics, University of Wisconsin Press, vol. 85(4), pages 614-626.
- Kjell Arne Brekke & Snorre Kverndokk & Karinen Nyborg, 2000.
"An Economic Model of Moral Motivation,"
290, Research Department of Statistics Norway.
- Paul J. Ferraro & Juan Jose Miranda & Michael K. Price, 2011. "The Persistence of Treatment Effects with Norm-Based Policy Instruments: Evidence from a Randomized Environmental Policy Experiment," American Economic Review, American Economic Association, vol. 101(3), pages 318-22, May.
- Emma Aisbett & Ralf Steinhauser, 2011.
"Does anybody give a dam? The importance of public awareness for urban water conservation during drought,"
Environmental Economics Research Hub Research Reports
10100, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
- Aisbett, Emma & Steinhauser, Ralf, 2011. "Does anybody give a dam? The importance of public awareness for urban water conservation during drought," Research Reports 107850, Australian National University, Environmental Economics Research Hub.
- 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.
- David Hensher & Nina Shore & Kenneth Train, 2006. "Water Supply Security and Willingness to Pay to Avoid Drought Restrictions," The Economic Record, The Economic Society of Australia, vol. 82(256), pages 56-66, 03.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Amelia Bidgood).
If references are entirely missing, you can add them using this form.