An Innovative Approach to Promote Water Use Efficiency
Published on by Water Network Research, Official research team of The Water Network in Academic
Increasing block-rate water budgets are an innovative type of escalating tiered price structure in which the consumption block sizes are based on household characteristics, environmental conditions, and a judgment by the water utility with regard to what constitutes "efficient" water use given those characteristics and conditions.
In these water budgets, prices are set relatively low for the most essential uses of water but then increase with usage. The price structure more accurately reflects the cost of supplying water and thus sends a more appropriate price signal to customers regarding water scarcity. It also helps water utilities to maintain fiscal balance despite uncertain fluctuations in supply and demand conditions.
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Taxonomy
- Natural Resource Management
- Drinking Water Managment