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Session: Water Resources I
Chaired By: Goylette Chami, University of Cambridge
When & Where: Thursday 30 June 2011, 09:00 - 11:15, Room S10
Presented By: Ralf Steinhauser, Australian National University
Co-Author(s): Emma Aisbett, Australian National University
Discussant(s): Sorada Tapsuwan, CSIRO

Downloads: Full Paper [199 kb]

Australia experienced a serious drought over the last decade. As a consequence most municipalities had to introduce policies to reduce the water usage in their urban areas. The demand-management tools employed included, raising water prices, mandatory restrictions on certain types of water use, and approaches aimed at inducing a voluntary behavior change. We test the effectiveness of the various policy tools empirically using daily water use data for a single municipality over the period of 4 ½ years. We use extensive weather data controls and have data on information campaigns, water price, restrictions, voluntary usage targets, and dam storage levels. We observe large and significant effects from increasing restrictions on water use, and also economically and statistically significant effects which can be attributed to information campaigns and ‘altruistic' behavior. Perhaps surprisingly, we are unable to identify a significant price effect once we control for the level of use restrictions. We propose that the low price elasticity estimate is due to the binding nature of the restrictions throughout our sample, constraining consumption to the very low elasticity part of the demand curve. We conclude that at times of extreme water shortage, formal restrictions and encouragement of voluntary consumption reductions are at least as effective as price instruments.

   

All Papers in this Session

WATER USE ADAPTATION AND THE ROLE OF DEMAND SIDE MANAGEMENT.

Presented by Ralf Steinhauser, Australian National University

Discussant(s): Sorada Tapsuwan, CSIRO

ADAPTING TO LESS WATER: HOUSEHOLD WILLINGNESS TO PAY FOR DECENTRALISED WATER SYSTEMS IN URBAN AUSTRALIA

Presented by Sorada Tapsuwan, CSIRO

Discussant(s): Anik Bhaduri, Center for Development Research (ZEF), University of Bonn, Germany

IMPACTS OF WATER SUPPLY UNCERTAINTY AND STORAGE ON EFFICIENT IRRIGATION TECHNOLOGY ADOPTION

Presented by Anik Bhaduri, Center for Development Research (ZEF), University of Bonn, Germany

Discussant(s): Janne Artell, MTT Agrifood Research Finland

A SPATIAL HEDONIC APPROACH TO WATER RECREATION VALUE

Presented by Janne Artell, MTT Agrifood Research Finland

Discussant(s): Goylette Chami, University of Cambridge

GAME-THEORETIC ANALYSIS OF WATER-RELATED INFECTIOUS DISEASE IN RURAL AREAS OF DEVELOPING COUNTRIES

Presented by Goylette Chami, University of Cambridge

Discussant(s): Ralf Steinhauser, Australian National University

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