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ARC Linkage Grant

Assessing willingness to pay for urban water, wastewater, gas and electricity delivery service standards

Dr RA Letcher; Mr D Graham; Prof DA Hensher

Institute of Transport and Logistics Studies

Project Summary

The utility industry is a substantial component of the Australian economy (2.2 % of GDP), underpinning national production. Recent infrastructure failures, costing up to $200 million per week, have been blamed largely on regulatory approaches that emphasise minimum price and cost solutions to utility service provision without any assessment or consideration of the willingness to pay for service quality and the value people place on surety of supply. Research on the role of WTP for service standards in regulating price and service quality is required to prevent future infrastructure failures. This research will provide substantial economic benefits to Australia through improved regulation and better targeting of infrastructure investment.

2006 :$  33,500
2007 :$  68,500
2008 :$  62,000
2009 :$  27,000