Abstract
This paper examines the perceptions of urban and regional water consumers in three areas of South Australia on the fairness of the water pricing system, the impact of increases in water pricing on households and pricing as a driver of water conservation. The study was conducted in 2009 during a time of severe drought and mandatory water restrictions. The results did not show a general aversion to all aspects of price increases but rather different sectors of the population were particularly resistant to different, specific aspects of water pricing. A state-wide water pricing policy in South Australia means that all consumers pay the same rate per volume of water consumed regardless of their location; yet in the regional study area, where it costs more for the service provider to supply the water, the respondents had stronger feelings that the price of water should be higher in places where it costs more to supply it. Generally, low income earners were less in favor of a block pricing system than higher income earners. The latter findings indicate a common lack of awareness around various aspects of water pricing. Some implications of the findings for water managers are outlined.
Highlights
This paper examines the perceptions of residents from differing socio-economic backgrounds on the fairness of household water pricing, increases in water prices and pricing as a driver of conservation.The research questions are: How do residents with different demographic characteristics perceive (i) the fairness of water pricing; (ii) increases in water prices; and (iii) water pricing as a strategy to motivate conservation? The study took place during a period of prolonged below average rainfall and mandatory water restrictions in South Australia
The areas studied included a cluster of suburbs in the northern part of greater metropolitan Adelaide, a cluster in the eastern metropolitan area (Metro East) and a large regional town in South Australia (Regional)
It can be concluded that these three pricing issues cannot be predicted by any of the demographic and socio-economic variables included in the analysis
Summary
This paper examines the perceptions of residents from differing socio-economic backgrounds on the fairness of household water pricing, increases in water prices and pricing as a driver of conservation.The research questions are: How do residents with different demographic characteristics perceive (i) the fairness of water pricing (including the tariff structure); (ii) increases in water prices; and (iii) water pricing as a strategy to motivate conservation? The study took place during a period of prolonged below average rainfall and mandatory water restrictions in South Australia. This paper examines the perceptions of residents from differing socio-economic backgrounds on the fairness of household water pricing, increases in water prices and pricing as a driver of conservation. The research questions are: How do residents with different demographic characteristics perceive (i) the fairness of water pricing (including the tariff structure); (ii) increases in water prices; and (iii) water pricing as a strategy to motivate conservation? Based on the data analysis a number of predictor variables for aspects of water pricing were identified, these are discussed under the socio-economic and demographic subheadings. A discussion of the key findings and the implications of the results bring the paper to a close. This includes an examination of the limitations of the study
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