Water Tariffs Research Articles

An integrated approach to water conservation: fuzzy logic assessment of water tariffs in Abu Dhabi Emirate’s residential sector

BackgroundAbu Dhabi, a part of the United Arab Emirates, is situated in an arid region where water scarcity is a significant concern. The residential sector in Abu Dhabi consumes a large portion of the available water resources, leading to a critical need for effective water management strategies. This study aims to understand the relationship between water tariffs and water consumption in the residential sector in Abu Dhabi. It employs an integrated fuzzy logic model, a form of artificial intelligence, to assess the impact of water tariffs on water consumption. The model includes variables such as water tariffs, the level of water awareness, the level of water behavior, and the level of technology use. The objective of these variables is to evaluate their impact on the water-saving index, which represents the ratio of daily water consumption per capita in Abu Dhabi to the global average.ResultsThe findings of this study, based on a survey measuring the level of water awareness, behavior, and technology use, revealed a potential strategy for reducing water consumption in Abu Dhabi’s residential sector. It was observed that increasing water tariffs, while maintaining current levels of water awareness, behavior, and technology use, could lead to a reduction in water consumption. However, it was also found that the impact of further tariff increases on water conservation diminishes after a certain threshold, indicating the necessity of a balanced approach in tariff adjustment. Interestingly, the study also highlights that Abu Dhabi residents demonstrate high levels of water behavior and technology use, indicating a positive trend toward water conservation.ConclusionsThis study emphasizes the importance of increasing water awareness among Abu Dhabi residents as a means to foster sustainable water consumption practices. While water tariffs can contribute to reductions in water consumption, the effects tend to decrease beyond a certain point. Therefore, a comprehensive approach involving water tariffs, increased water awareness, and the adoption of water-saving technologies may be the most effective strategy for water conservation. The insights from this study extend beyond Abu Dhabi and offer valuable guidance for addressing water conservation challenges worldwide. It highlights the importance of adopting a multi-faceted approach in water management, and the potential for such strategies to have international relevance in the pursuit of sustainable water consumption.

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.

Measuring and decomposing profit efficiency changes of water utilities: a case study for Chile

ABSTRACT Estimating profit inefficiency and its drivers is highly relevant for water utilities and water regulators to reduce water tariffs. We employed a novel methodological approach to compute profit inefficiency and changes to profit efficiency based on the Luenberger productivity indicator. This empirical application focused on the water industry in Chile from 2010 to 2018. Estimated average profit inefficiency was 43.6%, with the main contributor being allocative inefficiency (35.7%). In contrast, the effect of technical inefficiency was more limited (7.9%). Changes to profit efficiency differed among full private and concessionary utilities, with averages of 0.021 and 0.002, respectively.

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.

Economic attractiveness of domestic rainwater harvesting in Brazilian cities

Brazil is the fifth largest country by area in the world, with a variety of climates in its territory. This work assesses the economic attractiveness of domestic rainwater harvesting direct feed systems, for the replacement of non-drinking water, in 148 locations of the Brazilian territory considering hourly rainfall data for the 14-year period between 2008 and 2021. The water tariff and consumption data for each location were also considered along with estimated hourly and monthly consumption patterns. With annual operating expenses at 1% of the capital expenditure and an annual discount rate of 8%, the net present value for the 14-year period is positive in only 15 locations, which are among those with the highest water tariffs in the country. The results of these base case simulations discourage the installation of domestic RWH systems in most of the Brazilian locations considered. However, the results also show that, depending on house occupancy, filtration equipment cost, water tariff, and catchment area, outcomes more favorable to the installation of RWH systems are obtained, especially in cities of Brazil’s southern and southeastern regions.

Optimization of Urban Water Consumption in Residential Buildings

Water scarcity is a global issue that is rapidly worsening. Many researchers have explored various approaches to promote sustainable uses of water, with Greywater (GW) recycling and utilization of innovative plumbing fixtures being among the methods presented to reduce freshwater consumption for domestic usage. Nonetheless, previous studies have dealt with both means independently, without studying the integrated effect of utilizing both GW recycling and innovative plumbing fixtures together both on the quality of supplied water, as well as on the cost of the integrated system. Accordingly, this research aims at improving the efficiency of water usage in residential buildings through the development of a mathematical optimization model that utilizes a constructed database in order to select the most appropriate GW recycling system, plumbing fixtures and system components with the aim of improving the water quality, minimizing the water usage and reducing the cost. The developed model is divided into three main modules: input, water flow and annual worth quantification. The model was verified on a case study, and sensitivity analysis was performed to explore the impact of changing major input factors on the total annual cost. A factorial design examining both two- and three-factor interactions was used. The number of residents and the annual increase in water tariffs factors had the most significant impact on the total annual worth, accounting for 55% and 43.7% of the total variability, respectively. Furthermore, the model was validated by comparing its results with a previous study conducted in the United Kingdom, where the developed model presented a significant reduction of the lifecycle cost of the decentralized water system in residential buildings and attained freshwater savings of 58.17%.

Investigating the potential of groundwater recycling as an alternative to groundwater trading in terms of resource efficiency

Water and in particular groundwater is undoubtedly a natural resource of fundamental importance to humanity. However, their limited availability and the large increase in demand observed in recent years call for its optimal management. In this context, tradable water rights systems and the circular economy of water, which promotes water recycling, are two concepts on which management policies towards sustainable and efficient water management can be based. This paper attempts to highlight the potential that a management policy based on the circular economy of water can have against a policy based on tradable water rights in terms of economic efficiency of the resource. Thus, the research hypothesis of this paper is that under certain conditions water recycling can lead to higher economic efficiency for the resource than water trading can. For this purpose, two time-dynamic models are formulated, one for each different management policy, concerning the pumping of water from an aquifer by two different categories of users, and the corresponding optimal control problems are solved. The results of the simulations based on hydro-economic data of a region in Northern Greece show that there is a high dependence of the efficiency of the water recycling system on the recycled water tariff. Thus, it is concluded that for charging prices up to and beyond 0.20€/m3 a management policy of an aquifer based on the concept of circular economy can lead to a higher economic efficiency of water.

Analysis of a current water tariff and attitudes towards change: A representative study from a Palestinian city

AbstractThe problem of an outdated tariff has become acute recently with increased water scarcity in Palestine. Therefore, the goals of the study were to analyse the factors that could affect the water consumption in Jericho governorate, Palestine; explore societal perceptions of alternative water sources; and to identify areas that need to be re‐examined for tariff revision or changes to water source and delivery. A total of 76% of the respondents know the water tariff price, and 61% of the sample considers the tariff as high. Future suggestions to raise the price of water will meet resistance. Interestingly, 66% of the respondents agree with the possible future use of treated wastewater, and 46% of the respondents emphasize that treated wastewater is the most favoured solution for water scarcity. Overall, the results indicate the public identifies water conservation as possible and that alternative actions can be applied in order to manage and conserve water resources.

Status of the Water Supply and Sanitation Projects in Pakali and Bharaul of Sunsari District

Purpose: The paper is aimed to compare the current Status of the projects in Pakali and Bharaul water supply and sanitation projects in Sunsari district. Design/Methodology/Approach: The effectiveness of the water user supply committee, the project's productivity index, the payback period, and the operating ratio of the chosen projects were analysed. Findings/Result: The functionality status of Pakali and Bharaul water supply projects is found good but needs better by increasing the business. The operating ratio of the Pakali and Bharaul water supply projects was found 0.8 and 0.72 respectively which means they can bear their operating and maintenance cost. The selected projects are found technically feasible, and economically viable. Projects have profitability indices that are more than 1, indicating the potential to be implemented. Both water supply projects are water user supply committee registered, having own staff, Operation and maintenance fund, efficient water tariff collection, reliability, and accessibility but lack of water user supply committee meetings, and record keeping proper in Bharaul compared to Pakali whereas lack of water safety plan in both projects. Originality/Value: The study will be a benchmark for continuous performance improvements of the systems and a reference for the department for assessing the performance of any system of water supply. Paper Type: Status inquiry Research

Design the Water Tariff Structure: Application and Assessment of a Model to Balance Sustainability, Cost Recovery and Wise Use

The sustainable management of water resources can be pursued through effective tariff policies capable of discouraging water wastefulness. Increasing Block Tariffs (IBT) represent a method of pricing the water service which consists of providing various tariff ranges, with a unit cost that increases as consumption increases. The definition of the consumption ranges and the relative tariffs must guarantee the right balance between the needs of the users and the need to protect the resource according to 2030 Sustainable Development Goals (SDGs). This study proposes an optimization model useful for ensuring the tariff structure complies with the guidelines dictated by the Integrated Text for Water Services Tariffs (TICSI), an Italian standard that aims to rationalize and level out the fee structure at the national level. The purpose of the model is to guarantee the sustainability of the tariffs for users, protect less well-off households, and, at the same time, to ensure that the fees grow with consumption in an optimal way for the operator, in compliance with the economic constraints imposed by the national authority (ARERA). The model, which consists of a non-linear function capable of minimizing the difference between the tariffs before and after TICSI’ rules implementation, was tested through a case study. Specifically, the optimal water tariffs for each consumption range were defined for an operator in Southern Italy. The proposed model makes it possible to integrate EU guidelines relating to “polluter pays” and the protection of water resources more effectively into the national regulatory framework.

Influence of Design Variables on the Financial Feasibility of Rainwater Harvesting Systems

Extensive implementation of rainwater harvesting (RWH) systems can promote substantial improvement in urban water resource management. Therefore, establishing the financial feasibility of RWH systems is imperative for their dissemination. This study evaluated the influence of rainfall time series indicators (average annual rainfall, seasonality index and behaviour of periods without precipitation) and design variables (catchment area, rainwater demand, number of inhabitants, potable water demand and rainwater tank size) on the financial feasibility of RWH systems in eight Brazilian cities. Correlations between rainfall indicators and financial feasibility were introduced, along with sensitivity analysis of design variables. Financial feasibility was obtained in 30% to 70% of the simulated scenarios. Initial investment and operating costs varied significantly among the eight cities according to local prices. Systems with a catchment area of 200 m2 were capable of supplying, on average, 90.5% of the maximum rainwater consumption observed in this study. Local variation of potable water tariff schemes affected the financial feasibility of RWH systems. The number of inhabitants was the most influential design variable on the financial feasibility of RWH systems, followed by the rainwater tank size. Places with lower rainfall seasonality indexes and lower incidence and duration of dry periods are likely to lead to greater financial feasibility.

Analisis Penetapan Tarif Dasar PAMSIMAS Desa Sungai Raja Berdasarkan Teori Full Cost Recovery Dalam Persfektif Ekonomi Islam

This study aims to determine and understand the setting of PAMSIMAS tariffs in Sungai Raja Village based on the Full Cost Recovery theory and to understand and understand the Islamic Economics review of the setting of PAMSIMAS tariffs in Sungai Raja Village. The research methodology used is qualitative with descriptive method. The object of this research is PAMSIMAS Sungai Raja Village. Sources of data used in this study are primary data and secondary data. Primary data in the form of interviews, documentation and secondary data in the form of regulations and laws relating to the determination of drinking water tariffs, PAMSIMAS financial reports, number of customers, amount of water sold, data on water sources, installed capacity, sold capacity. Based on data analysis. The results of this study stated that adopting the regulation of the minister of home affairs number 21 of 2021 regarding the calculation and determination of drinking water tariffs, it was stated that based on the theory of Full Cost Recovery (full cost recovery) by formulating a basic cost, a basic tariff of Rp. 6,721/m3 while the tariff that is still in effect at Sungai Raja Village PAMSIMAS of Rp. 1500/m3 has not met the tariff with a full cost revovery mechanism. Based on the perspective of Islamic Economics, it is still contrary to Islam because the determination of the selling tariff for PAMSIMAS water is still detrimental to both parties (seller and buyer).
 Keywords: Full Cost Recovery, PAMSIMAS, Tariff Setting, Islamic Economic Perspective

Policy Note: An Alternative Approach to Designing Tariffs for Household Water Use: The Case of Los Angeles

Water Economics and PolicyOnline Ready No AccessPolicy Nook — Policy Note: An Alternative Approach to Designing Tariffs for Household Water Use: The Case of Los AngelesMichael HanemannMichael HanemannDepartment of Economics, Arizona State University USAhttps://doi.org/10.1142/S2382624X22710047Cited by:0 PreviousNext AboutSectionsView articleView Full TextPDF/EPUB ToolsAdd to favoritesDownload CitationsTrack CitationsRecommend to Library ShareShare onFacebookTwitterLinked InRedditEmail View article References Araya, F, K Osman and KM Faust [2020] Perceptions versus reality: Assessing residential water conservation efforts in the household. Resources. Conservation and Recycling, 162, 105020. Crossref, Google Scholar Attari, SZ [2014] Perceptions of water use. Proceedings of the National Academy of Sciences, 111(14), 5129–5134. 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The effect of sectoral differentiated water tariff adjustment on the water saving from water footprint perspective: A case study of Henan Province in China

Water price reform is an effective way of rationalizing and protecting water resources in areas where water is scarce. This paper first presents a method for measuring water footprint by sector based on the non-competitive input-output technique. Second, this research explores the relationship between water price adjustment and labor compensation, as well as regional water export. Accordingly, this paper constructs a mathematical planning model for differentiated water price adjustment by sector with the objectives of minimum water exports and maximum labor rewards, and conducts a simulation study in the water-scarce Henan Province. The study's findings suggest that: (1) In contrast to direct water use, water consumption in Henan Province is more balanced in terms of water footprint, with the food and tobacco processing industry replacing agriculture as the leading water consumption sector. (2) Sectoral differentiated pricing saves 6.9% more export water resources in Henan Province than uniform sector-wide pricing with the same export GDP loss. (3) At present, the industries in Henan Province that are in urgent need of increased water charges are agriculture, textile industry, Manufacture of leather, Processing of timber and furniture, Manufacture of paper and printing, and Manufacture of chemical products these totals 6 industries. An increase of $1.73, $4.87, $38.55, $51.20, $5.83 and $6.55 per cubic meter in the water price of these six industries can reduce the export water resources of Henan Province by 10.72%. As a result, our findings can be used to optimize water allocation and improve sustainable water use in water-scarce regions.

Contingent valuation of willingness to pay for urban water extended to non-urban northern Ghana

ABSTRACT The study sought to examine the willingness of rural and peri-urban communities in northern Ghana to pay for urban water services extended to them, without differentiated tariff determination to suit their socio-economic status as low-income households. Using a contingent valuation method and statistical simulation models, results showed that price per unit of water, income levels and service quality were significantly related to willingness to pay. However, despite stakeholder activities to improve water tariff payment, the process does not consider the views of the local people. Also peri-urban and rural communities connected to urban water systems owed more tariff arrears due to poverty, which negatively impacts on access to water. Alternative approaches such as tariff differentiation and extension of participatory interventions for poverty reduction schemes have been recommended.

Sustainability of rural water services in the humanitarian-development-peace nexus: a case study from Diffa, Niger

AbstractViolence committed by non-State armed groups has displaced over 250,000 people in the Diffa region of Niger and crippled the regional economy. The humanitarian response included substantial investment in water infrastructure which has largely alleviated the immediate needs of displacement-affected populations. However, ongoing insecurity threatens the sustainability of these rural water services. A systems-thinking approach to explain the interaction between different sustainability factors for rural water services is advocated by a growing body of literature, but is almost exclusively focused on stable contexts. The applied research reported here adopted a qualitative assessment methodology to determine the impact of the insecurity in Diffa on these sustainability factors. Twenty-five respondents from government, water management structures, donors, and non-governmental organisations were interviewed between March and June 2021. The research demonstrated that insecurity in Diffa impacts negatively on all sustainability factors for rural water services and impedes access, coordination, and communication by and between relevant actors. The overlapping humanitarian and development contexts and the push to implement a triple nexus approach – which includes peace as its third element – raise dilemmas concerning the application of water tariffs, the durability of water infrastructure, and the suitability of a community-based approach to water management.

Impact of improved water supply on livelihood and health: Emphasis on Doba and Nayagnia, Ghana

Water supports livelihoods through consumption, agricultural and industrial activities, sanitation and environmental services. The impact of water supply on health has been widely accepted, though these impacts are poorly documented. This study assessed the impacts of improved water supply on rural livelihoods in two communities (Doba and Nayagnia) in the Upper East Region, Ghana. Using structured questionnaires and statistical assessments, the positive impacts of improved water supply on health, hygiene, time-saving, productivity, food supply and nutrition, school performance and reduced stress on people especially women and expenditure on health were identified. A strong significant relationship (P = 0.001) between household income and the availability of improved water. Though there was a significant relationship between water tariff and access to potable water (P = 0.010), household income and water consumption were uncorrelated. Occupation and income, and availability of improved water were respectively significant. Income and availability of water also presented a significant value (P = 0.004). The study showed a progressive decline in water-related diseases after the provision and increasing access to improved water. Appropriate operational and maintenance schemes should be emphasized to ensure the proper sustainability of water supply systems to promote livelihoods in both communities. Training elected community members and making the necessary equipment available to facilitate regular maintenance and repairs were determined as the way forward to also ensure these positive impacts on livelihoods.

Inattention Matters: An Analysis of Consumers’ Inaction in Choosing a Water Tariff

Abstract This paper studies consumers’ choice between two different water tariffs. We document a large inaction in a novel setting where customers face a binary decision and receive simple, detailed, and personalized information about the financial savings they would obtain if they were to switch water tariff. Our empirical framework separates two sources of inertia: inattention and switching costs. The model estimates that half of the customers that would benefit from changing tariff are not aware of the opportunity they are offered. Conditional on paying attention, we estimate median switching costs to be around £100. A model where all customers are assumed to pay attention delivers instead implausibly high switching costs, with a median of £400. This shows the importance of inattention in explaining consumers’ inaction. Looking at the characteristics of the households, our results confirm previous findings that areas where households have higher levels of education or the proportion of minorities is lower display a higher responsiveness to potential savings. The new insight offered by our analysis is that this is entirely driven by attention, whereas switching costs actually increase with education and ethnic homogeneity. Our findings suggest that policies aimed at increasing attention can play a central role in fostering competition among suppliers and reducing inequalities.

Willingness to Pay Household-based PDAM Clean Water Service in Purwosuman Village Sidoharjo District Sragen Regency

Purwosuman Village is one of the villages in Sidoharjo District, which has several textile industries. The textile industry's existence provides various impacts on the environment, one of which is a decrease in water quality and quantity. Problems related to water resources trigger high costs to obtain water. This study examines the Willingness To Pay of the PDAM's desired clean water service by households and the factors influencing the value of Willingness To Pay. The sampling technique used is simple random sampling. Data analysis used the Contingent Valuation Method (CVM) approach to determine the value of Willingness To Pay. Multiple linear regression was performed to determine the factors that affect Willingness To Pay. This research shows that the average value of Willingness To Pay PDAM clean water tariff is IDR3.656,00/10m³; this value is more significant than the PDAM clean water rate in Sragen Regency IDR3.400,00/10m³. The total value of Willingness To Pay is IDR292.480,00. Factors that affect Willingness To Pay are income, education, and distance to water sources, while the number of family members does not affect Willingness To Pay (WTP).

The determinants of domestic water demand and the equity of tariffs: Empirical evidence from an Italian municipality

Since the seventies, an increasing block tariff regime (IBT) for water services has been in force in Italy to prevent water from being wasted and to ensure that all citizens can access an essential amount of water at low prices. This article describes an empirical analysis, based on an original household-level administrative data- base from an Italian municipality, that has three objectives: i) to verify the assump- tions underlying the IBT by estimating the main determinants of water demand, ii) to assess equity and affordability of the tariff in force, iii) to evaluate the effects of alternative tariffs, which take into account the household size and provide a sub- sistence minimum free of charge, and of subsidies targeted to families with limited means. The main results show a basically inelastic demand with respect to price and income, a regressive effect of the current water tariff and a significant propor tion of families at risk of affordability, particularly among single and larger house- holds. Alternative tariff methods would not be able to improve the equity of the system because the relationship between consumption and income is too weak. Only effective subsidies targeted to families with limited means can make a difference.