THE EFFECTWENESS OF PRICING AS A STAND-ALONE WATER CONSERVATION PROGRAM1

ABSTRACT: Economic theory clearly indicates that the use of increasing rate structures will reduce the demand for water and produce monetary incentives for consumers to conserve. One problem with estimating the effectiveness of using rate structures as a conservation program is that they are usually accompanied by other conservation efforts. Thus, it is difficult to determine the effectiveness of any one conservation component. This paper examines the effectiveness of increasing rate structures in a situation where no other conservation program was introduced. The paper uses customer data from the Spalding County (Georgia) Water Authority where an increasing rate structure replaced a descending rate structure in January 1991. Since the imposition of the increasing rate structure, the number of customers has increased 21 percent while total water demand has gone up only 15 percent and per customer water use has declined 5 percent. The daily water use per connection has declined from 243 gallons in 1990 to 231 in 1993, and monthly use has gone from 7,381 gallons to 7,028 per connection over the same period. Statistical tests indicate that water consumption during the two periods was significantly different while weather factors were not.     

THE W-INDEX FOR RESIDENTIAL WATER CONSERVATION1

ABSTRACT: An index of residential water efficiency - a “W-Index” - can serve as a measure of effectiveness of water conservation features in the home. The index provides a calculated numerical value for each dwelling unit, derived from the number and kind of water-saving features present, including indoor and outdoor water savers and water harvesting or recycling systems. A W-Index worksheet, devised for on-site evaluation of single-family residences in the Tucson, Arizona, region shows that a nonconserving residence with all the water-using features would use 151,000 gallons per year or 148 gallons per capita per day (gpcpd), while the fully conserving model would use 35,300 gallons per year or 35 gpcpd and with water harvesting and graywater recycling systems would have a maximum W-Index of W-160. A Tucson water conservation demonstration home, Casa del Agua, received a rating of W-139, and field tests of about 30 homes in new Tucson subdivisions show values ranging from W-75 to W-100, indicating the incorporation of some water conservation in current new models. By adjustment of some climatic or water-use parameters, the W-Index format can be applied to various types of dwelling units or to other urban areas. The W-Index can be used by individual homeowners or builders to evaluate water efficiency of residential units, or by water providers or water management agencies as a device for promoting and achieving water conservation goals.     

AN ECONOMIC ANALYSIS OF WATER CONSERVATION POLICY1

Water conservation is a much emphasized policy of the Federal government. Discussion of water conservation proposals often involves confusion between a conservation “ethic,” which is an end in itself, and conservation as a means for attaining various economic objectives. Analysis indicates that outside of ground water “mining.” water is usually a renewable and reusable resource. During periods of normal precipitation, water conservation should be employed only when the value of the water saved exceeds the cost of effecting the savings. Water conservation is most valuable as a drought contingency tactic. Water conservation as a substitute for structural provision to meet normal water demand growth is apt to prove shortsighted.     

A SUCCESSFUL WATER CONSERVATION PROGRAM IN A SEMIARID REGION OF NEBRASKA1

ABSTRACT: Ground water irrigation pumpage of the High Plains Aquifer is controlled at the state level in Texas and Oklahoma but at the regional level in Kansas and Nebraska. Critical declines in the aquifer that threatened the reliability of local public water supply wells prompted Nebraska's Upper Republican Natural Resources District (URNRD) to mandate water restrictions in 1978. Under current regulations, irrigators may not extract more than 1,842 millimeters of water per certified hectare (ha) in any five‐year period. Meter monitoring ensures that irrigators comply with restrictions. Farmers now incorporate irrigation scheduling into their cropping practices in order to meet URNRD controls. This study examines whether irrigators are using ground water efficiently while complying with pumpage limits. Crop irrigation requirements (CIR) from 1986 to 1999 were derived from a water balance approach incorporating Penman‐Monteith evapotranspira‐tion (ET) calculations from weather data supplied by the High Plains Climate Center automated weather station network. A ratio of average water pumped per well to the CIR was developed to verify irrigation efficiency. Results indicate that irrigation applications were less than CIR during most irrigation seasons. Irrigation efficiency increases can be attributed to crop rotations, favorable growing season precipitation, use of ET estimates to schedule irrigation, and water allocations limited to less than all certified hectares.     

NONPRICE WATER CONSERVATION PROGRAMS AS A DEMAND MANAGEMENT TOOL1

ABSTRACT: Water providers nationwide are implementing nonprice conservation measures such as education, public information, appliance retrofit and ordinances, with the expectation that these programs will reduce residential water demand. However, little empirical information exists on the effectiveness of nonprice conservation programs in reducing water demand. Previous econometric studies indicate these programs have had minimal impact. We examine the types and number of major nonprice conservation programs that have been implemented during an 11-year period in seven cities in the southwestern United States. A cross sectional, monthly time series residential water demand model, with parameters to control for variation in prices, temperature, precipitation and other factors, was used to empirically investigate the effectiveness of nonprice conservation programs in reducing water demand. We found significant reductions in use ranging between 1.1 percent and 4.0 percent per program. Because of the lack of information, we were unable to distinguish the effectiveness of individual or specific types of programs. Beyond finding that nonprice programs can be effective in reducing demand, questions regarding the efficiency and benefits to be achieved by conservation remain. As a step towards separating and evaluating the effects of individual programs, program benefits and efficiency, we recommend that utilities maintain more detailed and consistent information regarding the implementation of their nonprice programs.     

USE OF A PREDICTIVE MODEL IN EVALUATING WATER CONSUMPTION CONSERVATION1

ABSTRACT: The effectiveness of water conservation policies on reduction of water consumption was evaluated by use of a multiple regression predictive model. Data were obtained from eight Iowa communities, with regard to water consumption and water conservation policies adopted during the drought of 1977. The proposed model, which takes precipitation, temperature, month effects, and uniqueness of communities into account, is considered superior to the use of simple percent changes in evaluating the significance of reduction in water consumption due to conservation efforts. Among the variety of policies reviewed, mandatory policies with per capita restrictions were found to be most effective. However, voluntary conservation policies also resulted in significant reduction in some communities located in close proximity to other communities with severer water shortages. High credibility of local governments as to water shortage information was singled out as the most important factor in successful conservation by water resource policymakers of these communities. Use of the proposed predictive model for water consumption was demonstrated. Recommendations regarding future water conservation were made.     

THE ENHANCED ROLE OF WATER CONSERVATION IN THE COST-BENEFIT ANALYSIS OF WATER PROJECTS1

The concept of water conservation has increased in importance because of revisions in the rules and procedures for performing cost-benefit analyses of federal water projects. These revisions include a requirement that nonstructural and water conservation measures be incorporated into economic assessments of projects. Project analyses will now proceed as if water supplies were allocated “most effectively,” that is, to their highest valued uses. A related requirement provides that the net benefits of any project should now be valued using willingness to pay measures. A specific cost-benefit methodology accommodating the revisions is constructed and discussed. Informational requirements for applying this methodology are identified. In addition to being consistent with federal mandates, this technique offers important advantages over the traditional “requirements” approach to water supply planning.     

RESIDENTIAL WATER CONSERVATION: CASA DEL AGUA1

ABSTRACT: A single-family residence in Tucson, Arizona, was retrofitted with water-conserving fixtures, rainwater harvesting, and graywater reuse systems. During a four-year study, efficient use of water was shown to significantly decrease demand for domestic water at the house without reducing the residents' quality of life. The use of municipal water was reduced by 66 percent to 148 gallons per day (gpd) and total household use was reduced by 27 percent to 245 gpd. Graywater reuse averaged approximately 77 gpd or 32 percent of the total household water use. Evaporative cooling required about 15 gpd. Water use for toilet flushing was only 9 gallons per capita per day (gpcd) or 14 percent of interior water use.     

WATER REDUCTIONS FROM RESIDENTIAL AUDITS1

ABSTRACT: The water reductions resulting from Contra Costa Water District's 1989 residential audit program are measured using a multivariate regression model. The model explains metered residential water use as a function of both conservation and other household variables. The principle conclusions drawn are that (1) installation of low-flow showerheads reduced indoor water use by 9.7 percent or 7.8 gallons per capita day, (2) the outdoor segment of the audit reduced irrigation needs by 18.7 percent, and (3) irrigation timers are being used inefficiently.     

DEVELOPING AND ASSESSING A MODEL OF RESIDENTIAL WATER CONSERVATION1

ABSTRACT: Relevant literature was reviewed from which a model of residential water conservation was developed. Four residential conservation program interventions were posited: 1) public education, 2) pricing variables, 3) water use restrictions, and 4) building code requirements. Four exogenous variables affecting residential water use were also posited: 1) temperature, 2) rainfall, 3) household income, and 4) household size. The impacts of these eight variables on residential per capita daily use were assessed by cross sectional and time series analysis. Study results generally supported the porposed model, with less consistent support obtained for pricing variables and conservation beliefs. The paper concludes with the hypothesis that an inclining block rate structure coupled with an informational program designed to inform consumers of their consumption under each block will have a synergistic impact.     

A SURVEY OF STATE WATER CONSERVATION PROGRAMS IN THE U.S.1

ABSTRACT: Adequate water supplies are critical to the maintenance of a community's health and economic well-being. Across the nation communities are struggling to meet an expanding demand for water from municipal, industrial, agricultural, recreation, water quality, and power generation users. As the demand grows and communities actively compete with one another for a limited water supply, states are being called upon to help solve the problem. One possible solution that is being used in many areas is the development and implementation of a water conservation program to stretch the limited supply as far as possible. using a mailed survey, state water conservation programs and some of the characteristics of the different programs were documented. Responses to the nationwide survey were obtained from all 50 states. The specific water conservation program elements on which information was received from the survey included laws and restricted use, community assistance, education, research, and other services. Recommendations for states developing or considering the development of a water conservation program are outlined.     

WATER CONSERVATION IN CASABLANCA,MOROCCO1

ABSTRACT: This study examines water consumption characteristics in Casablanca and analyzes approaches for sustainable water demand management. Research procedures involve the development and estimation of water demand models for the residential/commercial, industrial, and institutional sectors; forecasts of water demand to 2010; and simulation of the effects of a complex of water conservation methods on the forecasted demands. The results indicate that residential/commercial water demand is weakly responsive to price changes (elasticity =?0.448) while institutional water demand is slightly more responsive (elasticity =?0.648). The conservation approaches used in the simulations included public education, plumbing code revisions to require use of water conservation devices, leak detection and repair, pricing policy, metering, and pressure reduction. The results indicate that considerable saving in water use can be attained through a comprehensive water demand management program.     

SIMULATION – A TOOL FOR WATER RESOURCE MANAGEMENT1

ABSTRACT: Proper economic evaluation of alternative plans will maximize the utility achieved from the resources available for water resource management. A knowledge of the frequency of occurrence of the events under study is necessary to fully utilize the advantages of economic evaluation in planning. Frequency information is widely used in flood control and water supply, but relatively unknown in water quality planning. A continuous, dynamic hydrologic and water quality model is presented to develop frequency curves for various water quality criteria. Results from the Denver Regional Water Quality Management Study are discussed as an example of the use of frequency analysis for economic evaluation of water quality management.     

EVALUATING INTERDEPENDENT WATERSHED CONSERVATION AND GROUND WATER MANAGEMENT REFORMS1

Abstract: Conserving the watershed can help to preserve ground water recharge. Preventing overuse of available water through pricing reforms can also substantially increase the value of an aquifer. Inasmuch as users are accustomed to low prices, efficiency pricing may be politically infeasible, and watershed conservation may be considered as an alternative. We estimate and compare welfare gains from pricing reform and watershed conservation for a water management district in Oahu that obtains its water supply from the Pearl Harbor aquifer. We find that pricing reform is welfare superior to watershed conservation unless the latter is able to prevent very large recharge losses. Watershed conservation that yields net gains in combination with pricing reform may cause net losses without the pricing reform. If adoption of watershed conservation delays the implementation of pricing reform, the benefits of the latter are significantly reduced.     

CASA DEL AGUA: A RESIDENTIAL WATER CONSERVATION AND REUSE DEMONSTRATION PROJECT IN TUCSON,ARIZONA1

ABSTRACT: A typical single family residence in Tucson, Arizona, was retrofitted to incorporate low-water-use fixtures and water reuse systems. The use of municipal water was reduced by 53 percent to 53 gallons per capita per day (gpcd) and total water use at the home was reduced by 33 percent to 74 gpcd.     

CASE STUDIES OF AGRICULTURAL WATER CONSERVATION1

Farmers from four irrigation districts in Texas and California were questioned about water conservation practices they are now using, those they plan to adopt, and potential incentives that government might offer to induce still further water conservation on their part. While responses differed somewhat from place to place and among individual farmers, the general results were: a) farmers reported that “water conservation” is not new to them, it is something they practice regularly; b) recent innovations such as laser controlled land leveling devices have permitted some substantial water use reductions in recent years; and c) even greater incentive mechanisms that government could provide and that farmers would accept as useful incentives, such as long term low interest loans for water saving equipment, would probably not be able to reduce water use in agriculture much further than 15 percent below current levels. It is recommended nonetheless that Federal agencies and local water districts and individuals should nonetheless pursue water conservation training and education programs, demonstrations of conjunctive use and water banking opportunities for water saving, and increased loan programs for installation of water saving equipment.     

IMPACTS OF RESIDENTIAL WATER REUSE IN THE TUCSON AREA1

ABSTRACT: Groundwater pumping constitutes approximately 100 percent of the water supply in the Tucson Active Management Area (AMA), Arizona. The current annual overdraft approaches 250,000 acre-feet, but the goal of the AMA is to eliminate the overdraft by the year 2025. Urban water reuse, if implemented by only 30 percent of the area's projected population, would reduce the annual ground-water overdraft by 25,000 acre-feet.     

AN EVALUATION OF THE 1997 EDWARDS AQUIFER IRRIGATION SUSPENSION1

ABSTRACT: In early 1997, the Texas Edwards Aquifer Authority implemented a pilot Irrigation Suspension Program with the objectives of increasing springflow and providing relief to municipalities during drought. Irrigators were paid an average of $234 per acre to suspend water use, a price higher than regional land rental rates. Auction theory and program implementation details suggest that the program implementation partially caused inflated bids. The Irrigation Suspension Program is also compared to two alternative programs: (1) subsidizing more efficient irrigation technology and (2) buying land. The irrigation suspension is found to be more cost‐effective relative to subsidizing improved irrigation efficiency because it can be put in place only when aquifer levels are low. Land purchase is a cheaper alternative if the bid levels remain at the levels observed.     

MUNICIPAL WATER USE AND WATER RATES DRIVEN BY SEVERE DROUGHT: A CASE STUDY1

ABSTRACT: This paper synthesizes and interprets data pertaining to the evolution of average water revenue, water use, and the average cost of water supply in the City of Santa Barbara, California, from 1986 to 1996, a period which included one of the most devastating droughts in California this century. The 1987–1992 drought hit the study area particularly hard. The City of Santa Barbara was dependent exclusively on local sources for its water supply. That made it vulnerable as the regional climate is prone to extreme variability and recurrent droughts. The 1986–1992 drought provided a rare opportunity to assess the sensitivity of municipal water use to pricing, conservation, and other water management measures under extreme drought conditions. Our analysis indicates that the average cost of water rose more than three-fold in real terms from 1986 to 1996, while the gap between the average cost of supply and the average revenue per unit of water (= 100 cubic feet) rose in real terms from $0.14 in 1986 to $ 0.75 in 1996. The rise of $3.08 in the average cost of supplying one unit of water between 1986 and 1996 measures the cost of hedging drought risk in the study area. Water use dropped 46 percent at the height of the drought relative to pro-drought water use, and remains at 61 percent of the pre-drought level. The data derived from the 1987–1992 California drought are unique and valuable insofar as shedding light on drought/water demand adaptive interactions. The experience garnered on drought management during that unique period points to the possibilities available for future water management in the Arid West where dwindling water supplies and burgeoning populations are facts that we must deal with.     

MEETING THE CHALLENGE OF POLICY-RELEVANT SCIENCE: LESSONS FROM A WATER RESOURCE PROJECT1

ABSTRACT: Water resource scientists face complex tasks in evaluating aspects of water projects, but relatively few assessment procedures have been applied and accepted as standard applications. Decision-makers often rely on environmental assessments to evaluate the value and operation of projects. There is often confusion about scientists' role in policy decisions. The scientist can affect policy-making as an expert withess, an advocate or a surrogate. By understanding the policy process, scientists can make their work more “policy relevant.” Using the Terror Lake hydro project in Alaska as a guide, three lessons are discussed: (1) not all problems are able to be solved with technology; (2) policy-relevant technology is rarely imposed on a problem; and (3) the scientist need not just react to the policy process, but can have an impact on how that process unfolds.