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Adapting to Less Water: Household Willingness to Pay for Decentralised Water Systems in Urban Australia

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  • Sorada Tapsuwan
  • Michael Burton
  • Aditi Mankad
  • David Tucker
  • Murni Greenhill

Abstract

In South East Queensland (SEQ), extended periods of drought and unprecedented population growth have resulted in a water strategy reliant on permanent water conservation measures. As a result, there has been increasing emphasis on the installation of decentralised water systems at the household level, in particular, rainwater tanks and greywater systems to ease the water shortage stress. Results from a survey of 590 households in SEQ reveal that willingness to pay (WTP) for rainwater tanks and greywater systems range from $800 to $7,400 and from $1,700 to $14,100, respectively. When compared to the actual market price, WTP is substantially lower and subsidies will be required to encourage adoption. Nonetheless, a subsidy of $500 can lead to 100 % uptake of greywater diversion devices. Hence, the policy implication is that not all devices are preferred and subsidising greywater diversion devices would lead to the highest level of uptake with the least amount of subsidy spending. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Sorada Tapsuwan & Michael Burton & Aditi Mankad & David Tucker & Murni Greenhill, 2014. "Adapting to Less Water: Household Willingness to Pay for Decentralised Water Systems in Urban Australia," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 28(4), pages 1111-1125, March.
    • Handle: RePEc:spr:waterr:v:28:y:2014:i:4:p:1111-1125
    DOI: 10.1007/s11269-014-0543-0
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    References listed on IDEAS

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    1. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555, January.
    2. Aditi Mankad & Meng Chong & Ted Gardner & Ashok Sharma, 2012. "Examining Biophysical and Socio-Demographic Factors across Mandated Tank Users in Urban Australia: A Linking Step towards Achieving Best Practices," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(7), pages 1983-1998, May.
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    5. Enedir Ghisi, 2010. "Parameters Influencing the Sizing of Rainwater Tanks for Use in Houses," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(10), pages 2381-2403, August.
    6. Spash, Clive L. & Urama, Kevin & Burton, Rob & Kenyon, Wendy & Shannon, Peter & Hill, Gary, 2009. "Motives behind willingness to pay for improving biodiversity in a water ecosystem: Economics, ethics and social psychology," Ecological Economics, Elsevier, vol. 68(4), pages 955-964, February.
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    1. Patricia Gober & Ray Quay & Kelli L. Larson, 2016. "Outdoor Water Use as an Adaptation Problem: Insights from North American Cities," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(3), pages 899-912, February.
    2. Groothuis, Peter A. & Cockerill, Kristan & Mohr, Tanga McDaniel, 2015. "Water does not flow up hill: determinants of willingness to pay for water conservation measures in the mountains of western North Carolina," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 59(C), pages 88-95.
    3. Dziedzic, Rebecca M. & Karney, Bryan W., 2016. "Analyzing water customer service expectations: A case study of the City of Guelph," Utilities Policy, Elsevier, vol. 41(C), pages 67-76.
    4. Legg, Peter & Hatton MacDonald, Darla & Bark, Rosalind H. & Tocock, Mark & Tinch, Dugald & Rose, John M., 2020. "Cultural Values, Deep Mining Operations and the Use of Surplus Groundwater for Towns, Landscapes and Jobs," Ecological Economics, Elsevier, vol. 178(C).
    5. Davis, Katrina J & Burton, Michael & Kragt, Marit E, 2016. "Discrete choice models: scale heterogeneity and why it matters," Working Papers 235373, University of Western Australia, School of Agricultural and Resource Economics.
    6. Weiwei Mo & Zhongming Lu & Bistra Dilkina & Kevin H. Gardner & Ju-Chin Huang & Maria Christina Foreman, 2018. "Sustainable and Resilient Design of Interdependent Water and Energy Systems: A Conceptual Modeling Framework for Tackling Complexities at the Infrastructure-Human-Resource Nexus," Sustainability, MDPI, vol. 10(6), pages 1-10, June.
    7. Zhang, Fan & Polyakov, Maksym & Fogarty, James & Pannell, David, 2016. "The Capitalized Value of Rainwater Tanks in the Property Market of Perth, Australia," Working Papers 246968, University of Western Australia, School of Agricultural and Resource Economics.

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