IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v82y2006i256p56-66.html

Water Supply Security and Willingness to Pay to Avoid Drought Restrictions

Author

Listed:
  • DAVID HENSHER
  • NINA SHORE
  • KENNETH TRAIN

Abstract

This paper studies Canberra households' and businesses' willingness to pay (WTP) to avoid drought water restrictions, using stated choice experiments. We find that customers evidence a lack of WTP to avoid most types of drought‐induced restrictions. Respondents appear unwilling to pay to avoid low‐level restrictions at all and to avoid higher levels of restrictions that are not in place every day. Given the option of watering on alternative days, customers appear willing to adjust their watering schedules compared with paying higher water bills and appear willing to tolerate high‐level restrictions for limited periods each year, compared with higher water bills.

Suggested Citation

  • 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, March.
    • Handle: RePEc:bla:ecorec:v:82:y:2006:i:256:p:56-66
    DOI: 10.1111/j.1475-4932.2006.00293.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4932.2006.00293.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-4932.2006.00293.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:aen:journl:2000v21-04-a01 is not listed on IDEAS
    2. Ronald C. Griffin & James W. Mjelde, 2000. "Valuing Water Supply Reliability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 414-426.
    3. David Hensher & Nina Shore & Kenneth Train, 2005. "Households’ Willingness to Pay for Water Service Attributes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 32(4), pages 509-531, December.
    4. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:sss:wpaper:201407 is not listed on IDEAS
    2. Gunnar Gutsche & Andreas Ziegler, 2016. "Are private investors willing to pay for sustainable investments? A stated choice experiment," MAGKS Papers on Economics 201640, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    3. Mesa-Jurado, Maria A. & Martin-Ortega, Julia & Ruto, Eric & Berbel, Julio, "undated". "The economic value of guaranteed water supply for irrigation under scarcity conditions," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114650, European Association of Agricultural Economists.
    4. Suziana Hassan & Søren Bøye Olsen & Bo Jellesmark Thorsen, 2018. "Appropriate Payment Vehicles in Stated Preference Studies in Developing Economies," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(4), pages 1053-1075, December.
    5. Jordan Louviere & Kenneth Train & Moshe Ben-Akiva & Chandra Bhat & David Brownstone & Trudy Cameron & Richard Carson & J. Deshazo & Denzil Fiebig & William Greene & David Hensher & Donald Waldman, 2005. "Recent Progress on Endogeneity in Choice Modeling," Marketing Letters, Springer, vol. 16(3), pages 255-265, December.
    6. Train, K. & Weeks, M., 2004. "Discrete Choice Models in Preference Space and Willingness-to Pay Space," Cambridge Working Papers in Economics 0443, Faculty of Economics, University of Cambridge.
    7. Pamela Searle & Peter Ayton & Iain Clacher, 2024. "Annuity selection in the presence of insurer default risk and government guarantees," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 91(1), pages 161-192, March.
    8. John V. Colias & Stella Park & Elizabeth Horn, 2021. "Optimizing B2B product offers with machine learning, mixed logit, and nonlinear programming," Journal of Marketing Analytics, Palgrave Macmillan, vol. 9(3), pages 157-172, September.
    9. Ajayi, V. & Reiner, D., 2020. "Consumer Willingness to Pay for Reducing the Environmental Footprint of Green Plastics," Cambridge Working Papers in Economics 20110, Faculty of Economics, University of Cambridge.
    10. Zack Dorner & Daniel A. Brent & Anke Leroux, 2019. "Preferences for Intrinsically Risky Attributes," Land Economics, University of Wisconsin Press, vol. 95(4), pages 494-514.
    11. Catalina M. Torres & Sergio Colombo & Nick Hanley, 2014. "Incorrectly accounting for preference heterogeneity in choice experiments: what are the implications for welfare measurement?," DEA Working Papers 65, Universitat de les Illes Balears, Departament d'Economía Aplicada.
    12. Panchalingam, Thadchaigeni & Howard, Gregory & Allen Klaiber, H. & Roe, Brian E., 2023. "Food choice behavior of adolescents under parent-child interaction in the context of US school lunch programs," Food Policy, Elsevier, vol. 115(C).
    13. Riccardo Scarpa & Cristiano Franceschinis & Mara Thiene, 2021. "Logit Mixed Logit Under Asymmetry and Multimodality of WTP: A Monte Carlo Evaluation," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 643-662, March.
    14. Alfred Appiah & Wiktor Adamowicz & Patrick Lloyd-Smith & Diane Dupont, 2019. "Reliability of Drinking Water: Risk Perceptions and Economic Value," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(02), pages 1-27, April.
    15. Morrissey, Karyn & Plater, Andrew & Dean, Mary, 2018. "The cost of electric power outages in the residential sector: A willingness to pay approach," Applied Energy, Elsevier, vol. 212(C), pages 141-150.
    16. Che Ibrahim, Nur Syuhada & Kamaludin, Mahirah & Shaari, Nur Fatihah, 2019. "A Discrete Choice Experiment in Estimate Public Willingness to Pay for Attributes of Water Services in Terengganu, Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 53(2), pages 213-225.
    17. Zander, Kerstin K. & Straton, Anna, 2010. "An economic assessment of the value of tropical river ecosystem services: Heterogeneous preferences among Aboriginal and non-Aboriginal Australians," Ecological Economics, Elsevier, vol. 69(12), pages 2417-2426, October.
    18. Kjaer, Trine & Gyrd-Hansen, Dorte, 2008. "Preference heterogeneity and choice of cardiac rehabilitation program: Results from a discrete choice experiment," Health Policy, Elsevier, vol. 85(1), pages 124-132, January.
    19. James I. Price & Patrick R. Lloyd-Smith & Diane P. Dupont & Wiktor L. Adamowicz, 2019. "Floods and Water Service Disruptions: Eliciting Willingness-to-Pay for Public Utility Pricing and Infrastructure Decisions," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(02), pages 1-20, April.
    20. Farsi, Mehdi, 2010. "Risk aversion and willingness to pay for energy efficient systems in rental apartments," Energy Policy, Elsevier, vol. 38(6), pages 3078-3088, June.
    21. Clevo Wilson & Wasantha Athukorala & Benno Torgler & Robert Gifford & Maria A. Garcia-Valiñas & Shunsuke Managi, 2021. "Willingness to pay to ensure a continuous water supply with minimum restrictions," Empirical Economics, Springer, vol. 61(3), pages 1519-1537, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:82:y:2006:i:256:p:56-66. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.