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Water Resources Management

, Volume 28, Issue 4, pp 1111–1125 | Cite as

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

  • Sorada TapsuwanEmail author
  • Michael Burton
  • Aditi Mankad
  • David Tucker
  • Murni Greenhill
Article

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.

Keywords

Rainwater Greywater Rebate Subsidy Rainfall Policy 

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Copyright information

© Springer Science+Business Media Dordrecht 2014

Authors and Affiliations

  • Sorada Tapsuwan
    • 1
    Email author
  • Michael Burton
    • 2
  • Aditi Mankad
    • 3
  • David Tucker
    • 1
  • Murni Greenhill
    • 1
  1. 1.CSIRO Ecosystem SciencesWembleyAustralia
  2. 2.School of Agricultural & Resource Economics, Faculty of Natural & Agricultural SciencesUniversity of Western AustraliaCrawleyAustralia
  3. 3.CSIRO Ecosystem SciencesBrisbaneAustralia

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