Value and price: a transdisciplinary approach to urban water management

Abstract

This paper puts forward the benefits of a transdisciplinary approach to environmental management, using urban New Zealand use and value of freshwater as a case study. New Zealand is not water poor, but suffers from regional seasonal stresses on freshwater resources. The old mindset that water is a free gift from nature prevails within the water management industry, encouraging unsustainable consumption behaviours that are likely to develop into significant economic dis-benefits. Existing pricing structures are obscuring signals of both water shortages and wasteful practices, raising concerns that New Zealand urban water is underpriced and undervalued. The paper aims to fit a transdisciplinary research framework, drawing from economic, social and environmental disciplines, to establish options for resource management and asset investment. By the coupling of values with consumption, and the willingness to pay for environmental goods and services, this framework maximises environmental and welfare objectives aligned with sustainable development goals.