An Economic Assessment of the Impacts of Outdoor Water Use Restrictions in South Florida

Authors

Lara Kiesau, Florida International UniversityFollow

Document Type

Thesis

Degree

Master of Science (MS)

Major/Program

Environmental Studies

First Advisor's Name

Pallab Mozumder

First Advisor's Committee Title

Committee chair

Second Advisor's Name

Mahadev G. Bhat

Second Advisor's Committee Title

Committee member

Third Advisor's Name

Michael C. Sukop

Third Advisor's Committee Title

Committee member

Keywords

outdoor water use restrictions, difference in differences, South Florida, drought management, water conservation

Date of Defense

5-15-2020

Abstract

Population growth and climate change are important factors determining residential water demand. Most residential water consumption can be attributed to outdoor use. To reduce water consumption, outdoor water use restrictions (OWRs) have become a popular policy tool in the last decades. We developed an integrated framework consisting of a Difference in Differences (DID) analysis, Value Function approach and Discrete Choice Model to perform an economic assessment of the impacts of OWRs in South Florida. The results reveal a decreasing effect of up to 133 gallons per person per month due to the strictest OWR, equaling a yearly value of almost US$42.2 million for South Florida residents. To link with the regional hydrological system, we estimate that the implementation of this OWR could be related to a 0.9 million acre-feet drop in Lake Okeechobee. The findings deliver beneficial information for policy decisions regarding the economic and societal implications of OWRs.

Identifier

FIDC008996

Recommended Citation

Kiesau, Lara, "An Economic Assessment of the Impacts of Outdoor Water Use Restrictions in South Florida" (2020). FIU Electronic Theses and Dissertations. 4524.
https://digitalcommons.fiu.edu/etd/4524