WWRC 97-10
Effectiveness of Residential Water Conservation Price and Nonprice Programs
Executive Summary
Short-term recurrent drought and projected long-term demand-supply problems compel
municipal water suppliers to consider water conservation measures. Conservation measures
encourage consumers to use water more efficiently, reducing the quantity used to meet the same
needs. Conservation induced reductions in individual and system wide water demand can be used
to alleviate temporary water shortages; avoid increased water supply, treatment, system expansion
and consumer costs; and extend the ability of existing supplies and system capacity to meet current
and growing demands.
Over the past decade an increasing number of utilities have changed from declining block rate
pricing to more conservation-oriented uniform and inclining rate structures where the price per unit
remains the same or increases as water consumption increases. By 1994 the number of water
providers using declining rate structures was less than 40 percent, down from 60 percent in 1986,
and the number of providers using inclining rate structures had increased from eight percent in 1986
to more than 22 percent in 1994. Utilities nationwide are also using nonprice conservation programs
as a substitute, or in addition, to price conservation programs in an effort to reduce residential
demand.
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