Empirical Economics https://doi.org/10.1007/s00181-020-01955-8 Willingness to pay to ensure a continuous water supply with minimum restrictions Clevo Wilson 1 · Wasantha Athukorala 2 · Benno Torgler 1 · Robert Gifford 3 · Maria A. Garcia-Valiñas 4 · Shunsuke Managi 1,5 Received: 14 October 2016 / Accepted: 27 July 2020 © Springer-Verlag GmbH Germany, part of Springer Nature 2020 Abstract This study provides a quantitative assessment of the willingness to pay to avoid water use restrictions taking into account psychological, attitudinal and behavioural influences. We analyse determinants of households’ willingness to pay to ensure a continuous water supply in Brisbane, Australia. The results show that in addition to socio-economic variables, attitudinal and behavioural factors—including values, norms, and beliefs—influence residents’ valuation. They also underscore the impor- tance of accounting for socio-economic variables and pertinent psychological and behavioural aspects when implementing policies to manage and conserve urban water. Keywords Water use restrictions · Willingness to pay · Residential sector · Behavioural change 1 Introduction Water shortages lead to inconvenience for residents, the imposition of an economic cost on the community, and a loss of a producer surplus for the water authority (Dandy 1992; Hensher et al. 2005; March et al. 2012). In such cases, residents look for alternative ways to avoid or comply with the restrictions. In general, the willingness to pay (WTP) to avoid water restrictions (WTPAR) is driven by such factors as the costs B Shunsuke Managi managi@doc.kyushu-u.ac.jp 1 QUT Business School, Queensland University of Technology, Brisbane, Australia 2 Department of Economics, University of Peradeniya, Kandy, Sri Lanka 3 School of Psychology, University of Victoria, Victoria, BC, Canada 4 School of Economics and Business, University of Oviedo, Asturias, Spain 5 Urban Institute & Departments of Urban and Environmental Engineering, Kyushu University, 744, Motooka Nishi-ku, Fukuoka, Japan 123