Determinants of the price response to residential water tariffs : meta-analysis and beyond

Meta-analyses synthesise available data on a phenomenon to get a broader understanding of its determinants. This work proposes a two-step methodology. 1) Based on a broad dataset of residential water demand studies, it builds a meta-regression model to estimate mean and standard deviation of price elasticity of residential water demand. 2) The resulting meta-model serves as a basis for implementing an approach that directly simulates the range of price elasticities resulting from policy-relevant combinations of its determinants. This simulation approach is validated using the available dataset. Despite evidence of low average price elasticity, the scenarios simulated using our meta-regression estimates show that increasing block rate tariffs are associated with higher price elasticity, and stresses the importance of using state-of-the-art methodologies when evaluating the price response. This completes other methodological insights obtained from the meta-analysis itself. Policy implications on the use of pricing to bring about water savings are discussed

Smart Metering, Water Pricing and Social Media to Stimulate Residential Water Efficiency: Opportunities for the SmartH2O Project

Abstract The SmartH2O project aims to provide water utilities, municipalities and citizens with an ICT enabled platform to design, develop and implement better water management policies using innovative metering, social media and pricing mechanisms. This project has as a working hypothesis that high data quality obtained from smart meters and communicable through social media and other forms of interaction could be used to design and implement innovative and effective water pricing policies. Planned case studies in the UK and Switzerland are introduced. We anticipate that SmartH20 research outcomes will be of use to those interested in linking smart metering, social media and smart pricing approaches to achieve more sustainable water management outcomes

Balancing renewable energy and river resources by moving from individual assessments of hydropower projects to energy system planning

As governments and non-state actors strive to minimize global warming, a primary strategy is the decarbonization of power systems which will require a massive increase in renewable electricity generation. Leading energy agencies forecast a doubling of global hydropower capacity as part of that necessary expansion of renewables. While hydropower provides generally low-carbon generation and can integrate variable renewables, such as wind and solar, into electrical grids, hydropower dams are one of the primary reasons that only one-third of the world’s major rivers remain free-flowing. This loss of free-flowing rivers has contributed to dramatic declines of migratory fish and sediment delivery to agriculturally productive deltas. Further, the reservoirs behind dams have displaced tens of millions of people. Thus, hydropower challenges the world’s efforts to meet climate targets while simultaneously achieving other Sustainable Development Goals. In this paper, we explore strategies to achieve the needed renewable energy expansion while sustaining the diverse social and environmental benefits of rivers. These strategies can be implemented at scales ranging from the individual project (environmental flows, fish passage and other site-level mitigation) to hydropower cascades to river basins and regional electrical power systems. While we review evidence that project-level management and mitigation can reduce environmental and social costs, we posit that the most effective scale for finding balanced solutions occurs at the scale of power systems. We further hypothesize that the pursuit of solutions at the system scale can also provide benefits for investors, developers and governments; evidence of benefits to these actors will be necessary for achieving broad uptake of the approaches described in this paper. We test this hypothesis through cases from Chile and Uganda that demonstrate the potential for system-scale power planning to allow countries to meet low-carbon energy targets with power systems that avoid damming high priority rivers (e.g., those that would cause conflicts with other social and environmental benefits) for a similar system cost as status quo approaches. We also show that, through reduction of risk and potential conflict, strategic planning of hydropower site selection can improve financial performance for investors and developers, with a case study from Colombia

Assessment of smart-meter-enabled dynamic pricing at utility and river basin scale

The advent of smart metering is set to revolutionize many aspects of the relationship between water utilities and their customers, and this includes the possibility of using time-varying water prices as a demand management strategy. These dynamic tariffs could promote water use efficiency by reflecting the variations of water demand, availability, and delivery costs over time. This paper relates the potential benefits of dynamic water tariffs, at the utility and basin scale, to their design across a range of timescales. On one end of the spectrum, subdaily peak pricing shifts use away from peak hours to lower a utility’s operational and capital expenses. On the other end, scarcity pricing factors in the variations of the marginal opportunity cost of water at weekly or longer timescales in the river basin from which water is withdrawn. Dynamic pricing schemes that act across timescales can be devised to yield both types of benefits. The analysis estimates these benefits separately for Greater London (United Kingdom) and its 15 million inhabitants. Scarcity pricing implemented on a weekly timescale equates the marginal cost of residential water with estimates of the marginal economic values of environmental-recreational flows derived from tourism, property values, etc. Scarcity pricing during droughts could result in a 22–63% average reduction in environmental flow shortage while residential price increases would be capped at 150% of base levels. Yet, its ability to protect environmental flows could decrease in extreme shortage situations. The net present value of savings from peak pricing is conservatively evaluated at approximately £10 million for each initial percentage point in daily peak-hour price increase

Effects of initial aquifer conditions on economic benefits from groundwater conservation

Worldwide, there is growing recognition of the need to reduce agricultural groundwater use in response to rapid rates of aquifer depletion. To date, however, few studies have evaluated how benefits of conservation vary along an aquifer's depletion pathway. To address this question, we develop an integrated modeling framework that couples an agro-economic model of farmers' field-level irrigation decision-making with a borehole-scale groundwater flow model. Unique to this framework is the explicit consideration of the dynamic reductions in well yields that occur as an aquifer is depleted, and how these changes in intraseasonal groundwater supply affect farmers' ability to manage production risks caused by climate variability and, in particular, drought. For an illustrative case study in the High Plains region of the United States, we apply our model to analyze the value of groundwater conservation activities for different initial aquifer conditions. Our results demonstrate that there is a range of initial conditions for which reducing pumping will have long-term economic benefits for farmers by slowing reductions in well yields and prolonging the usable lifetime of an aquifer for high-value irrigated agriculture. In contrast, restrictions on pumping that are applied too early or too late will provide limited welfare benefits. We suggest, therefore, that there are ‘windows of opportunity’ to implement groundwater conservation, which will depend on complex feedbacks between local hydrology, climate, crop growth, and economics

The Fukushima Daiichi Accident

The Fukushima Daiichi Accident consists of a Report by the IAEA Director General and five technical volumes. It is the result of an extensive international collaborative effort involving five working groups with about 180 experts from 42 Member States with and without nuclear power programmes and several international bodies. It provides a description of the accident and its causes, evolution and consequences, based on the evaluation of data and information from a large number of sources available at the time of writing. The set contains six printed parts and five supplementary CD-ROMs. Contents: Report by the Director General; Technical Volume 1/5, Description and Context of the Accident; Technical Volume 2/5, Safety Assessment; Technical Volume 3/5, Emergency Preparedness and Response; Technical Volume 4/5, Radiological Consequences; Technical Volume 5/5, Post-accident Recovery; Annexes. The JRC contributed to volumes 1,2 and 3, which are attached.JRC.F.5-Nuclear Reactor Safety Assessmen