Are Views of Water Bodies Related to Water Consumption? An Empirical Analysis from New Zealand

Robbie Maris and Yvonne Matthews

Working Papers in Economics from University of Waikato

Abstract: Freshwater scarcity is worsening as we quickly approach the freshwater planetary boundary. There has been extensive research and policy development in the space of water scarcity, pollution and accessibility, centered around the Sustainable Development Goals (SDGs). A large body of literature examines household and climate characteristics predictive of water consumption by households. However, there does not appear to be any research on the role of views of and proximity to water bodies in household water consumption. While researchers have long recognised the relationship between "water views" and property prices, the relationships between water views and water consumption have been all but ignored. In this paper, we develop a simple model of water consumption which depends on the perceptions of water scarcity and the perceptions of whether water scarcity is an issue. Using geographic information systems (GIS) viewshed analysis, we model whether properties in Tauranga, New Zealand, have views of lakes and the coast. We then use these variables in a fixed effects model of water consumption. We find that views of lakes are associated with higher water consumption and views of the coast are associated with lower water consumption. We suggest that these effects are driven by psychological biases which alter the perceptions of water scarcity and concern for water scarcity. We deploy a range of robustness checks and argue that our results are likely causal. However, there is still plenty of research required to comprehensively unpack the relationship between views of water bodies and water consumption.

Keywords: Water consumption; Viewshed analysis; Water scarcity; Fixed effects; Water demand (search for similar items in EconPapers)
JEL-codes: D12 D91 Q21 Q25 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2022-06-18
New Economics Papers: this item is included in nep-agr, nep-dem and nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:wai:econwp:22/10

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