Water Pricing Research Articles

Water Management Adaptation to Climate Change in Mediterranean Semiarid Regions by Desalination and Photovoltaic Solar Energy, Spain

Integration of renewable energy sources and water production technologies is a must when facing water scarcity problems in semiarid regions, such as Mediterranean regions. The use of additional water resources and production methods, such as reclaimed water and, more specifically, desalinated water, means present and necessary water resources to introduce in the water balances to attend to water demands within a global warming and droughting scenario. These solutions have the inconvenience of energy/power needs and costs. However, the development of renewable energies like photovoltaic solar energy, with lower and lower costs and greater efficiency, makes these economically feasible facilities, reaching competitive production costs for marine or sea desalinated water by around 50% of reduction in energy costs and 20–30% of savings in final water production cost. This paper presents a practical project or action focused on the integration of renewable energies and new water resources by introducing a Photovoltaic Energy Plant (PVEP) as an energy source to feed a Seawater Desalination Treatment Plant (SWDTP). The PV facility is designed to cover all the energy demanded using the SWDTP during the day, and even studying the possibility of selling the energy production exceeds and injecting them into the energy supply network, covering the needs of buying energy needed during the high period where there is no photovoltaic energy production. Thus, savings related to energy costs and even incomes coming from energy sales mean an important reduction in operation costs or expenditures (OPEX), which makes economically feasible and sustainable the investment and the final price of water produced within the Mutxamel SWDTP. The final reduction cost in water desalination reaches 25% on average.

A comprehensive evaluation of private sector investment decisions for sustainable water supply systems using a fuzzy-analytic hierarchy process: A case study of Ha Nam province in Vietnam

This study examined the factors that affect the private sectors' willingness to invest in rural water supply. The study applied a mixed methods approach, including an overview of relevant studies, expert consultation, exploratory factor analysis using SPSS software, and a fuzzy-analytic hierarchy process to identify and evaluate the factors applicable to Ha Nam province in Vietnam. Some factors were distinguished that are significant to private investors’ rural water supply investment decisions, including tax incentive policy, policies to support preferred access to loans and credit, a state risk-sharing mechanism, a mechanism to adjust water price, community support, high community demand for clean water, and input water quality. In addition, the study constructed an investment attractiveness index to evaluate the attractiveness of private sector investment for two typical rural water supply projects in Ha Nam province. This index can be used as a basis for the government to design appropriate incentives to attract investment from private investors and construct an investment attractiveness map.

Feasibility analysis of rates of PDAM, South Halmahera district, North Maluku based on full cost recovery

This study aims to conduct an analysis of the feasibility of PDAM tariffs in South Halmahera Regency based on full cost recovery. In 2018, the average water tariff per m3 was IDR 3,046.41, or 53.67% of the essential cost of water per m3 of IDR 5,676.60. Whereas for 2019, the average water tariff per m3 is IDR 3,112.35, or 52.02% of the crucial cost of water per m3 of IDR 5,982.96. In 2018 and 2019, the selling price of water was still below the basic price of water, so the applicable average tariff did not fully cover costs (full cost recovery). This happened because it used the 2006 water tariff. PDAM Halmahera Selatan Regency has never proposed a new tariff policy. It has yet to evaluate its tariff policy every year because it focuses on its social role in serving the community's water supply and expanding service coverage. PDAM has also never received operational assistance subsidies from the South Halmahera Regency Government.
 Public interest statements
 This study proposes tariff changes that can cover total costs (full cost recovery) for the Regent of South Halmahera Regency. If the tariff proposal is not approved, the PDAM should seek operational assistance subsidies to cover the full costs from the South Halmahera Regency Government. If the two efforts are unsuccessful, the PDAM must carry out cost efficiencies to reduce the high operating expenses.

Water Valuation in Urban Settings for Sustainable Water Management

This study examines water scarcity and quality deterioration in various components of the urban setting, including agriculture, manufacturing, construction, residential buildings, and the recreational industries. This paper also analyzes various measures that can be used as valuation matrices to assess the quality and quantity of water consumption, as well as conservation practices and sustainable management strategies. The aim of this work is to enhance and encourage an increase in the value of consumed water through economistic, efficient, and sustainable approaches. The analysis includes the evaluation of measures such as price reform, adoption of efficient appliances, implementation of effective utilization techniques, reduction in water waste, treatment of wastewater, and employment of reuse and reclamation techniques. This article further discusses the multifaceted costs associated with the acquisition of water, emphasizing the need to consider not only economic factors but also environmental and social implications. This study examines the potential adverse effects of introducing value-added measures, specifically focusing on the impact of water pricing reforms on farmers and industrial manufacturers. The analysis highlights the potential increase in costs that these stakeholders may face as a result of such reforms. This study suggests that the implementation of subsidies can be an effective measure to mitigate the negative effects discussed. This article highlights the urgent global need for governments and international organizations to implement strict policies and regulations in order to preserve water resources and protect their inherent value and, also, emphasizes the importance of consumers understanding the true value of water in order to grasp its significance and scarcity.

Novel Water Pricing Model for Water Network Projects: A Case Study of Jiaodong Water Diversion Project in China

The uneven distribution of water resources in time and space restricts the development of society, which is a universal problem facing the world. To improve the ability to regulate water resources in water diversion projects and alleviate the contradiction between water resources and social development, China has decided to build water network projects (WNPs). A WNP is an integrated water supply system that includes multiple water sources and network water supply lines and integrates the functions of water supply, water delivery, and optimal allocation of water resources into a system that can supply water to many users. An appropriate water pricing mechanism is the key to ensuring the sustainable operation of water network projects. This paper presents a comprehensive water pricing model (WPM) for WNPs. The purpose of this model is to unify the water price measurement standard of WNPs and lay the foundation for water price marketization in the future. By applying the model to the Jiaodong WNP, it is found that the model is expected to improve the unbalanced use of water sources and the large difference in prices at water supply points (WSPs) in the project. This study not only provides a theoretical basis for water pricing reform but also has great potential to improve the efficiency of water resource use.

Water resources allocation considering water supply and demand uncertainties using newsvendor model-based framework

A novel newsvendor model-based framework for regional industrial water resources allocation that considers uncertainties in water supply and demand was proposed in this study. This framework generates optimal water allocation schemes while minimizing total costs. The total cost of water allocation consists of the allocated water cost, the opportunity loss for not meeting water demand, and the loss of the penalty for exceeding water demand. The uncertainties in water demand and supply are expressed by cumulative distribution functions. The optimal water allocation for each water use sector is determined by the water price, the unit loss of the penalty and opportunity loss, and the cumulative distribution functions. The model was then applied to monthly water allocation for domestic, industrial, and agricultural water use in two counties of Huizhou City, China, whose water supply mainly depends on Baipenzhu Reservoir. The water demand for each water use sector and the monthly reservoir inflow showed good fits with the uniform and P-III distributions, respectively. The water demand satisfied ratio for each water use sector was stable and increased for the optimal water allocation scheme from the newsvendor model-based framework, and the costs were lower compared with the actual water allocation scheme. The novel framework is characterized by less severe water shortages, lower costs, and greater similarity to actual water use compared with the traditional deterministic multi-objective analysis model, and demonstrates strong robustness in the advantages of lower released surplus water and higher water demand satisfied ratio. This novel framework yields the optimal water allocation for each water use sector by integrating the properties of the market (i.e., determining the opportunity loss for not meeting water demand) with the government (i.e., determining the water price and the loss of the penalty for exceeding water demand) under the strictest water resources management systems.

An Economic Evaluation of the Rural Drinking Water Fee Using the System Dynamics Method

In this research, the system dynamics method was applied to investigate the effect of technical and economic parameters on the water fee and provide a solution to find the actual price of water. To assess the performance of the simulated model, the financial balance and explanatory notes of the Rural Water and Wastewater Company of Hamedan province were used from 2011 to 2016. Comparing the simulation results and observational data, the correlation coefficient and normalized root mean square error indexes were obtained at 0.99% and 4%, respectively. The results indicated that despite raising the water fee in recent years, the company’s financial balance was negative, the balance diagram further declined over time, and the company losses increased. Sensitivity analysis showed that the fund balance of the company was more water fee-sensitive and its sensitivity to the time had an increasing trend. However, an increase in the water fee has no remarkable effect on the customer’s willingness to pay for the water. In addition, Powell’s optimization algorithm suggested the lowest water fee to prevent a negative fund balance in the company.

Evaluating water policies under the changing conditions of climatic variables in North Khorasan Province, Iran

Abstract The paper aimed to evaluate the impacts of water pricing and quota policies under changing climatic conditions on the major production factors using economic-biophysical modeling. The data were collected by 382 questionnaires focusing on wheat, barley, cotton, alfalfa, and sugar beet crops in the 2017–2018 cropping year in North Khorasan Province, Iran. Climate change scenarios were defined as wet, moderate, and dry scenarios resulting from precipitation changes. The results showed that climate change scenarios reduce the total irrigated area of crops and total water used. Due to the effect of precipitation on crop yield, dry and moderate climate changes reduce the total gross income, while wet climate changes increase it. The scenarios of quota and pricing policies were then applied under climate change scenarios. The amount of water conserved by applying the quota policy was equal to the quota rate, while the impact of the pricing policy varied depending on the type of climate change. The highest amount of water conserved belonged to the conditions of dry climate change in Atrak and Central Desert catchments, which was about 6.8–8.6 and 3.83–14.48%, respectively. As the climate moves toward drought conditions in this province, the implementation of such policies can partially protect water resources.

A real-time market-based framework for basin-wide surface water pricing and allocation considering the available water uncertainty

Market-based approaches are increasingly considered reallocating instruments that put water consumption at its highest economic value among competing water users. Setting up a water market can have a lot of environmental, social, economic, and legal complexities. One of the main issues is the uncertain nature of the available water, which can cause the failure of markets, especially during drought conditions. Therefore, there is a need for market mechanisms to consider and reduce the adverse impacts of available water uncertainty on market outcomes. Accordingly, this paper proposes a new real-time seasonal smart water market framework for basin-wide surface water pricing and allocation. The framework uses the results of the reservoir water allocation optimization models and ANFIS-based monthly river discharge forecasts to better assist the water users with their bidding. The market manager uses updated available information at the beginning of each season to provide users with a more accurate understanding of available water to adjust their tradings for the rest of the year. The applicability and efficiency of the proposed framework are evaluated by applying it to the Gorganrood River basin in Iran. According to the results, the framework increased users' benefits from 721 to 1050 billion rials, which is more efficient than an annual market. Water markets can use this framework to improve their ability to cope with the uncertainty of available water, increase their users' benefits, and encourage them to improve their efficiency. Furthermore, the proposed framework allows the decision-makers in water sectors (e.g., industrial, agricultural, etc.) to discover time and location specific water allocation and price for different water users.

Role and impact of urban water prices on the management of groundwater consumption due to Covid-19 outbreaks

The main objective of this study is to investigate the environmental role and impact of urban water prices, and hence its consumption in Tehran on its groundwater level drawdown. The issue gets vital in times of drought when the scarcity value of water exceeds benefits of groundwater environmental flow. Hence, the argument is that urban water tariffs may play a role in managing groundwater flow.In this regard, the harmful impact of urban water consumption on the environmental flow of groundwater resources is distinguished. Then the objective would be to identify determinants of urban water consumption. To do so, an urban water's demand function, including important key regressors such as price, income, temperature, and rainfall is estimated. Moreover, the role of Covid-19 in urban water consumption is highlighted.Results show a demand elasticity of −0.29 ± 0.1 for urban water consumption, or that a 10 percent increase in average price results in a decline in urban water consumption of 1.9–3.9 percent. In addition, one percent lower urban water consumption causes 1.3 ± 0.1 percent less groundwater extraction, or that response of a 10 percent decrease in the consumption could cause a decline in groundwater extraction of 12–14 percent. Last but not least, a 1 percent decrease in underground extraction for urban water raises 13.2 ± 6.7 cm of GRACE water level after three months.The results show that groundwater exploitation for urban drinking water is a responsible contributor to the water level drawdown in Tehran. In addition, the significant elasticity of 0.29 shows that price mechanisms are useful to manage hydrological scarcity and the consequent disasters. Moreover, observing significant effects of covid-related determinants for calming down the upward trend of groundwater extraction, we alert for post-covid deterioration of subsidence areas due to regrowth of water consumption.

Geothermal-solar integrated Multistage Flash Distillation Cogeneration system: A cleaner and sustainable solution

The geothermal water is at shallow depth at most of the places in Gujarat. The objective of this paper is to develop a green desalination system which can provide potable fresh drinking water. In this study, a Multi-Stage Flash Distillation system (MSF system) is designed for desalination of geothermal water where the energy source for the system is solar. Based on the temperature requirement of the MSF system solar Evacuated Tubes (ETC) are used for increasing the water temperature in the system. Python programming and Coolprop properties was used for the design and thermodynamic analysis of the whole system of both ETC and MSF desalination system. Simulations were performed to produce heat from ETC with the geothermal MSF system for generation of steam and salt. The details of material selection and corrosion protection techniques are also reviewed in the paper. The results of the simulation were satisfactory, and the salt concentration of the water was reduced up to the standards of freshwater i.e., it was reduced from up to 194 PPM. Cost estimation of the system was also performed in the form of CAPEX and OPEX expenditures. The price of water per cubic meter was estimated to be 0.1034 USD.

Co-Evolutionary Mechanism of Stakeholders’ Strategies in Comprehensive Agricultural Water Price Reform: The View of Evolutionary Game Based on Prospect Theory

In today’s world, the contradiction between water supply and demand is becoming increasingly pronounced, with a particular emphasis on the severe shortage of water for agricultural purposes. As a result, it has become imperative to promote the comprehensive reform of agricultural water pricing and increase water conservation awareness among water users. However, during the actual promotion process, the conflicting interests among stakeholders often create a behavioral game that seriously hinders the effective implementation of the agricultural water price reform. Therefore, it is crucial to address this conflict of interest and find ways to overcome it in order to ensure the successful implementation of the agricultural water pricing reform. In order to explore the dynamic evolution process of the behavior and decision making of the stakeholders in the comprehensive agricultural water price reform and the influencing factors and to propose relevant strategies to effectively promote the reform. This article constructs a three-party game model based on MA-PT theory with the government, farmers, and water supply units as the main subjects, solves the equation with the perceived benefit matrix instead of the traditional benefit matrix, and calculates the objective conditions for reaching the steady state. The simulation results show that the behavioral decision of the game subject to participate in the reform will be influenced by their perception of gains and losses, and there is a mutual influence between the three strategic choices. Therefore, the reform of agricultural water prices should consider the affordability of farmers and water supply units. The government appropriately adopts a reward system to encourage farmers and water supply units to actively participate in the reform to play a positive role and appropriate penalties for promoting the reform, the early realization of the reform goals, and the development of water-saving agriculture.

A case study of comparative techno-economic and life cycle assessment of tap water versus household reverse osmosis-based drinking water systems in a North Indian city

Abstract Household reverse osmosis (RO)-based water purifiers have gained popularity in India due to concerns about the quality of tap water. However, the widespread adoption of these systems has significant impacts on water pricing and the environment. The objective of this study was to assess the techno-economic performance and life cycle assessment (LCA) of household RO-based water purifiers in Srinagar city of North India. Our results demonstrate that household ROs reduce the concentration of important dietary minerals such as fluoride and magnesium in drinking water by 50%. In addition, the average total water cost from a household RO is three to four times more than what is being paid for tap water. Two different scenarios were compared in LCA. The first scenario was safe drinking water from a conventional drinking water treatment plant (scenario 1), while the second scenario was water from a household RO system (scenario 2). The results showed that the environmental impacts of abiotic depletion, acidification of water bodies, eutrophication, global warming and ozone depletion in scenario 2 were higher than in scenario 1. The findings infer that water utilities should encourage citizens to rely on conventional tap water as a cheaper and environmentally friendly option compared to household ROs.

Cost analysis and performance investigation of solar-powered desalination system utilizing modified sodium polyacrylate adsorbent material

Seawater has been desalinated using various processes at different techniques, most of which depend on fossil fuels. On the contrary, there is a need for environmentally benign desalination systems. Adsorption desalination system (ADS) is one of these systems thatemploy eco-friendly materials to reduce environmental pollution and global warming. This paper examines the performance metrics of promising materials used in ADS to lower desalinated water prices. This research uses sodium polyacrylate (SP), special SP/(NH4)2CO3 activated materials, and SP/CaCl2 composite to theoretically examine ADS's performance and cost analysis. Also, ADS performance with and without heat recovery (HR) is compared. Using tools from MATLAB and TRNSYS, the model is carried out over a year using live weather data from hot regions. Results show that the SP/CaCl2 composite has a relatively high specific daily water production (SDWP) of 15 m3/ton with COP = 0.67. The SDWP can be increased up to 45 m3/ton if heat recovery is used in the system. The cost of desalinated water is estimated at 3.8 $/m3 using Solar energy and 0.63 $/m3 using waste heat evaluated for a system with HR.

Policy Note: Mental Accounts and Water Prices

Raising the price of municipal water services is highly fraught in many countries due to the political pressures to keep water bills affordable. As a result, most countries fail to recover the full costs of water provision, a problem made worse by an underestimation of the real cost of providing water. The case of Singapore illustrates that this problem is in part due to “mental accounting,” which is consistent with Lasswell’s concept of an “intelligence function.” Situating an understanding of this intelligence function within the Singapore water case gives a better understanding of the reluctance to raise water prices.

Farmer Response to Change in Irrigation Water Pricing in Khyber Pakhtunkhwa: A Multinomial Logistic Regression Analysis

The River Swat is one of Pakistan's interior rivers, lying in the Khyber Pakhtunkhwa province. Despite being semi-dry, the area is a significant grain and fruit-producing area. However, persistent drought in recent years, along with excessive water extraction, has resulted in a constant decline of water pouring into the Swat River's mainstream, resulting in serious deterioration of ecosystems along the river's lower reaches. Water pricing is the best tool to control the misuse of water resources and will lead to the optimum use of this very precious resource. 300 farmers were chosen randomly and a preliminary test of the quantitative questionnaire was conducted before data collection to ensure clarity. To analyze the quantitative dataset Multinomial Logistic Regression, a version of ordinary regression was used. Farmers in the study area who face a 100% rise in water prices were polled to gauge their reactions. The results reveal that factors that are "total land area", "age", "total farm income", "slight water shortage", & "presence of fruit plants" are statistically significant. According to the finding, many farmers reacted to the rise in irrigation water prices and they were ready to use irrigation water more efficiently. This study also observed and concluded that just raising the irrigation water price is not a realistic and permanent solution.

Analisis Manajemen Tingkat Pengelolaan Air Bersih Di Maluku Utara (Studi Kasus Kabupaten Halmahera Selatan)

The purpose of this study was to determine how the influence of the level of clean water demand in the Regional Drinking Water Company (PDAM) of South Halmahera Regency. With a quantitative research approach, in this study, using the population is the customer of the Obi Laiwui District Drinking Water Company (PDAM), which is 3000 household units and the sample used is 44 households. By using multiple linear regression analysis in data analysis, the final results show that the price of water has a significant effect on the demand for clean water. Likewise, total household income and population have a significant effect on the demand for clean water. From the results of this study, it is suggested that PDAM companies carry out routine programs such as surveys regarding satisfaction, problems or obstacles faced by the community in obtaining clean water, such as a program for checking water channels in people's homes and periodic meter changes.

ОПТИМИЗАЦИЯ РЕЖИМОВ РАБОТЫ ГЭС НА ОСНОВЕ ТЕОРИИ ПРЕДЕЛЬНОЙ ПОЛЕЗНОСТИ И ОЦЕНКИ СТОИМОСТИ ГИДРОРЕСУРСА

The purpose of this article is to solve the problem of optimizing the operation of a hydroelectric power station based on the theory of marginal utility and assessing the cost of a hydro resource, taking into account the characteristic modes of operation of a hydroelectric power station. In this work, a universal method, which combines an optimization method and a method for assessing marginal utility. The method developed by the authors involves use the adequate representation of the incremental rate characteristic and the determination of the cost of the hydro resource for the control of the operating modes of the HPP. Using the example of the Novosibirsk HPPs and TPPs, an assessment of the energy efficiency, proposing the concept of a developed methodology for determining the price of water for HPPs, will be obtained. Based on the results of the implementation of the developed approach at Novosibirsk HPPs, the electricity sales price competitive electricity market can be matched with the electricity sales price generated at TPP, which will be approximately 370 ¢/kWh

Study on an Equilibrium Water Price System Based on Cooperative Game Technology

In this study, the theory of equilibrium water prices is constructed and practiced based on previous research on cooperative game technology and the water price system. The equilibrium water price utilized in this study emphasized solving the unbalanced and unsustainable water supply system, including the reclaimed water resources and the current water price used in numerous Chinese cities. Safety, affordability, and sustainability become the key factors of the equilibrium water price system, which is operated and analyzed in a typical city in southeastern China. The cooperative game model of equilibrium water price is solved by game technology, considering various factors such as the price strategy, the water supply quantity, and the local water demand. The practical application shows that the theoretical system can effectively solve the problem of water price formation mechanisms after the unified allocation of different types of water resources. It not only enhances the enthusiasm and initiative of the public in the utilization of reclaimed water, but also plays an important role in the rational utilization of multiple water resources for different purposes by introducing a reasonable water price ratio and local water resource allocation.

A smart Sustainable decision Support system for water management oF power plants in water stress regions

Power Plants (PPs) is considered as critical facilities in each region because of essential role through energy generation processes. These facilities are also depended to water availability especially in water stress areas. Due to the critical water shortage in many areas around the world, it is necessary to make an optimal condition among water consumption and the increasing demand for electricity to prevent any further conflict of interests between industry, householders and the environmental goals. There are different techniques for controlling Water Consumption (WC) in these industries. This paper develops a smart Decision Support System (DSS) for monitoring, prediction and control sections based on Artificial Intelligent (AI) and integration of the PESTEL matrix and Multi Criteria Decision Making (MCDM) methods. Monitoring section comprises Fuel Consumption (FC), Atmospheric Temperature (AT), Power Plant Temperature (PPT) and Power Plant Efficiency (PPE), in which FC has the most influence on WC based on ANOVA evaluations in both cold and warm seasons. The prediction results have illustrated that Adaptive Neuro Fuzzy Inference System model is more efficient for the WC estimation with a correlation coefficient over 0.99. Ordered Weighted Averaging (OWA) also demonstrated that in the optimistic and pessimistic states, the most priority is linked to E3 (Establishment of evaporation control systems by contractor companies and concluding a guaranteed purchase contract with a power plant worth one and a half times the current amount of water price). In the last step of technical approaches, the smart controlling system is added for execution of water-energy nexus in the PP based on proportional–integral–derivative controller system. Finally, the performance of the DSS is approved with more than 80% agreement of experts and more than 90% precision in prediction procedure through this investigation. Application of this DSS can also be helpful for developing countries to achieve the UN Sustainable Development Goals.