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The welfare costs of urban outdoor water restrictions

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  • Donna Brennan
  • Sorada Tapsuwan
  • Gordon Ingram

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 .

Suggested Citation

  • Donna Brennan & Sorada Tapsuwan & Gordon Ingram, 2007. "The welfare costs of urban outdoor water restrictions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(3), pages 243-261, September.
  • Handle: RePEc:bla:ajarec:v:51:y:2007:i:3:p:243-261
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    File URL: http://hdl.handle.net/10.1111/j.1467-8489.2007.00395.x
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    References listed on IDEAS

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    1. 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, pages 292-308.
    2. Quiggin, John, 2006. "Urban water supply in Australia: the option of diverting water from irrigation," Risk and Sustainable Management Group Working Papers 149857, University of Queensland, School of Economics.
    3. Lin Crase & Brian Dollery, 2006. "Water rights: a comparison of the impacts of urban and irrigation reforms in Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, pages 451-462.
    4. Renzetti, Steven, 1992. "Evaluating the welfare effects of reforming municipal water prices," Journal of Environmental Economics and Management, Elsevier, pages 147-163.
    5. Mark Hoffmann & Andrew Worthington & Helen Higgs, 2006. "Urban water demand with fixed volumetric charging in a large municipality: the case of Brisbane, Australia ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, pages 347-359.
    6. Tresch, Richard W. & Tresch, Richard W., 2002. "Public Finance," Elsevier Monographs, Elsevier, edition 2, number 9780126990515.
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