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Title: Tariff structures and incentives for water demand management
Authors: Kayaga, Sam
Smout, Ian K.
Keywords: Water supply
Public policy
Economics & finance
Issue Date: 2014
Publisher: © ICE Publishing
Citation: KAYAGA, S. and SMOUT, I.K., 2014. Tariff structures and incentives for water demand management. Proceedings of Institution of Civil Engineers - Water Management, 167 (8), pp. 448-456.
Abstract: Urban water managers need to adopt water demand management (WDM) as one of the ways to provide for the needs and demands of escalating urban populations, amidst the negative impacts of increased pollution loads and climate change on finite water resources. This paper reviews how urban water tariff structures could be designed to promote water conservation in households while also ensuring revenue sufficiency for the service providers and affordability for low-income households. As an example, the paper describes the case of Zaragoza (Spain), a city where implementation of a water-conserving tariff and providing economic incentives largely contributed to a 27% reduction in overall water consumption between 1996 and 2008, although the population of the city increased by 12%. Similar principles were adapted to model a water-saving, socially equitable tariff for the city of Kampala (Uganda). The proposed tariff for Kampala can save over 2·5 million m3 of water and generate an extra US$ 0·68 million of revenue per year, which could be used to extend water services to currently unserved households in low-income settlements. If implemented, the tariff could enhance economic efficiency, revenue sufficiency, social equity and service coverage.
Description: Permission is granted by ICE Publishing to print one copy for personal use. Any other use of these PDF files is subject to reprint fees. The definitive version of this paper is also available at: http://www.icevirtuallibrary.com/content/serial/wama.
Version: Published
DOI: 10.1680/wama.12.00120
URI: https://dspace.lboro.ac.uk/2134/14499
Publisher Link: http://dx.doi.org/10.1680/wama.12.00120
ISSN: 1741-7589
Appears in Collections:Published Articles (WEDC)
Published Articles (Civil and Building Engineering)

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