Determinants of Residential Water Consumption: Evidence and Analysis from a Ten-Country Household Survey

Water Resources Research, 47, 2011

Crawford School Research Paper

45 Pages Posted: 1 Jun 2012

See all articles by R. Quentin Grafton

R. Quentin Grafton

Australian National University (ANU) - Centre for Resource and Environmental Studies (CRES); Australian National University (ANU) - Crawford School of Public Policy

Tom Kompas

Australian National University (ANU) - Crawford School of Public Policy

Michael B. Ward

Economics Department, Monash Business School

Hang To

Australian National University (ANU) - Crawford School of Economics and Government

Date Written: 2011

Abstract

Household survey data for 10 countries are used to quantify and test the importance of price and nonprice factors on residential water demand and investigate complementarities between household water-saving behaviors and the average volumetric price of water. Results show (1) the average volumetric price of water is an important predictor of differences in residential consumption in models that include household characteristics, water-saving devices, attitudinal characteristics and environmental concerns as explanatory variables; (2) of all water-saving devices, only a low volume/dual-flush toilet has a statistically significant and negative effect on water consumption; and (3) environmental concerns have a statistically significant effect on some self-reported water-saving behaviors. While price-based approaches are espoused to promote economic efficiency, our findings stress that volumetric water pricing is also one of the most effective policy levers available to regulate household water consumption.

Suggested Citation

Grafton, R. Quentin and Kompas, Tom and Ward, Michael B. and To, Hang, Determinants of Residential Water Consumption: Evidence and Analysis from a Ten-Country Household Survey (2011). Water Resources Research, 47, 2011; Crawford School Research Paper. Available at SSRN: https://ssrn.com/abstract=2071501

R. Quentin Grafton (Contact Author)

Australian National University (ANU) - Centre for Resource and Environmental Studies (CRES) ( email )

Canberra, Australian Capital Territory 0200
Australia

HOME PAGE: http://cres.anu.edu.au/~qgrafton

Australian National University (ANU) - Crawford School of Public Policy

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

Tom Kompas

Australian National University (ANU) - Crawford School of Public Policy ( email )

7 Liversidge Street
Lennox Crossing
Canberra, Australian Capital Territory ACT 0200
Australia

Michael B. Ward

Economics Department, Monash Business School ( email )

Wellington Road
Clayton, Victoria 3
Australia

HOME PAGE: http://www.monash.edu.au/research/people/profiles/profile.html?sid=2042119&pid=9319

Hang To

Australian National University (ANU) - Crawford School of Economics and Government ( email )

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

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