Nonprice water conservation programs as a demand management tool

Water providers nationwide are implementing nonprice conservation measures such as education, public information, appliance retrofit and ordinances, w ith the expectation that these programs will reduce residential water deman d. However, little empirical information exists on the effectiveness of non price conservation programs in reducing water demand. Previous econometric studies indicate these programs have had minimal impact. We examine the typ es and number of major nonprice conservation programs that have been implem ented during an Ii-year period in seven cities in the southwestern United S tates. A cross sectional, monthly time series residential water demand mode l, with parameters to control for variation in prices, temperature, precipi tation and other factors, was used to empirically investigate the effective ness of nonprice conservation programs in reducing water demand. We found s ignificant reductions in use ranging between 1.1 percent and 4.0 percent pe r program. Because of the lack of information, we were unable to distinguis h the effectiveness of individual or specific types of programs. Beyond fin ding that nonprice programs can be effective in reducing demand, questions regarding the efficiency and benefits to be achieved by conservation remain . As a step towards separating and evaluating the effects of individual pro grams, program benefits and efficiency, we recommend that utilities maintai n more detailed and consistent information regarding the implementation of their nonprice programs.