Evaluation of community preferences for decentralised water management systems: a case study in Akaroa, Banks Peninsula

Abstract

Limitations on the supply of fresh water and increasing demand for council supplied water have become major issues in Akaroa, a tourist town on the Banks Peninsula approximately 80 kilometres from Christchurch City. Restrictions on domestic water use in the summer and new requirements for decentralised water management systems for new construction have been used to alleviate the burden of town water supply. Rainwater harvesting systems (RWHS) and greywater reuse system (GWRS) both represent potential options to decentralise the current water supply even further. This study informs the ongoing debate about water allocation on the Banks Peninsula by conducting a choice experiment (CE) to evaluate Akaroa homeowners’ preferences for installing these systems. Primary data was collected from Akaroa residents, and a latent class model was specified to estimate willingness to pay (WTP) for decentralised water supply systems. Results reveal that approximately two-thirds of the sample actually had a negative WTP for decentralised systems (range from -$3,145 to -$1,672), while WTP estimates for the remaining respondents ranged from $1,912 to $2,749. For both of these groups, subsidies will be required to encourage the adoption of all types of systems. Identification of the factors that affect latent class membership could be a focus for further studies.