The welfare costs of urban outdoor water restrictions

Donna Brennan, Sorada Tapsuwan and Gordon Ingram

Australian Journal of Agricultural and Resource Economics, 2007, vol. 51, issue 3, 243-261

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 .

Date: 2007
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