Water Conservation in Kelowna.

Why?

The Okanagan

The Okanagan

The Okanagan

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The Okanagan

Kelowna Water Providers

• Five purveyors– RWD: Groundwater– CITY: Lake– GEID: Upland + lake– BMID: Upland– SEKID: Upland +

ground

Kelowna Water Providers

• 2012/2013 Water RatesBMID SEKID GEID RWW CITY

Fixed $32.27 $38.00 $44.00 $15.44 $9.25

Rate | max $0.000 | 18.9 $0.322 | 30

$0.388 | 49.2 $0.433 | 80

$0.436 | 87.1 $0.657 | 125

$0.584 $1.134

40 m2 $32.27 $38.00 $44.00 $23.63 $29.34

Kelowna Water Providers

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Benefits of Conservation

• Dual Flush Toilet, – $200, two per house ($400 total)– Toilet, 29% of ~25 m3 / month indoor– Save $16.42 per year,– $328.40 @ 5% pays same!– NET RETURN NEGATIVE!!! BUT– Positive if replacing or

new build.

Benefits of Conservation

• Xeriscape, say 75% less outdoor water.– Save expensive peak water, ~$120 / yr• Depends on yard size, etc.

– Conversion cost, ~ $8/ft2

• 66x120 yard, ~30K convert– $2,400 at 5% pays $120 / yr– NET RETURN NEGATIVE!!!

BUT– New yard, incremental cost

Benefits of Conservation

• Household perspective1. Save some money (CITY, RWD)– Not enough for replace, but maybe new install.– No savings if not priced (BMID, SEKID, GEID).

2. Avoid penalties or damage– Fine/cutoff if violate outdoor watering bans– Damage risk for sensitive plants

3. Doing good for community / environment.

Benefits of Conservation

• For utility, delay capital costs.– Delay $20M one year, save $400K interest (5%).– Kelowna, reduce average water use 2.5% per year,

‘buy’20 yrs.

Research Project

• Residential Survey:– Environmental attitudes– Okanagan water knowledge– Residence characteristics– Demographics– Conservation behaviors• Investments inside• Investments outside• Behaviors

Research Project

• Data collection– Canada411 address and phone number harvest,• Stratified by water provider and near borders.

– Telephone survey with internet option (2008),• 80% respondents chose internet!

– Mail survey with internet option (2009),– Forgot to ask responent age!• Follow up telephone contact.

– 516 returned surveys (337 with age).

Research Project

ConservationIndoor Conservation Investment

Count Percent

Tap Aerator 196 38

Low Flow Showerhead 366 71

Low Flow Toilet 294 57

Efficient Laundry Machine 245 47

Efficient Dish Washer 212 41

Greywater system 5 1

ConservationOutdoor Conservation Investment

Count Percent

Water Less 261 51

Low water grass 69 13

Moisture Probe 12 2

Timed Irrigation 356 69

Rain Barrel 61 12

Greywater System 2 0

Soil Amendment 200 39

Pool Cover 58 11

Gravel 164 32

Xeriscaping 134 26

ConservationConservation Behaviors

Count Percent

Scrape Dishes 257 50

Wash in Basin 203 39

Turn off tap while brushing teeth 414 80

Turn shower off when soaping up 74 14

If it is yellow, let it mellow, … 248 48

Use dishwasher when full 435 84

Use laundry machine when full 455 88

ConservationBMID SEKID GEID RWD CITY OTHER

In House 2.75 2.62 2.44 2.25 2.43 2.66

On Yard 2.52 2.59 2.51 2.69 2.49 2.80

Behavior 4.29 4.02 4.01 3.88 3.71 4.29

• No significant difference across providers– Measure total number of activities undertaken.

• What, no price effect!!!– Examine interactions– Examine ‘matched sample’.

Matched Samples

• Question: If I am near a border, do I act like people far from the border? ORIs my behavior influenced by behavior of people nearby who pay differently?

• Answer: Compare ‘similar’ people near and away from border.

Matched Samples

• Matching1. Near border = treat.2. Away = control3. For each near obs.,

find ‘similar’ far obs.4. Compare variables

of interest betweentreatment and control.

Matched Samples

• Comparing within, not between purveyors.– All in group face same rate.– All in group get same bills, other info from

purveyors.– Between purveyors, uncertain of cause• Price effect• Information campaign effect• Subsidy programs• Different rules (lawn watering, etc.)

Matched SamplesGroup Treatment Variable N Diff (N) P-value Diff (2N) P-Value

FLAT near PAY Inside 21 0.1818 0.6336 0.1905 0.4827

FLAT near PAY Outside 42 0.4545 0.3237 0.4808 0.2373

FLAT near PAY Behave 21 0.6818 0.1092 0.5476 0.0413

PAY near FLAT Inside 42 -0.5532 0.0626 -0.6047 0.0075

PAY near FLAT Outside 21 -0.2766 0.4504 -0.5233 0.0507

PAY near FLAT Behave 42 0.5319 0.1544 0.3488 0.1622

– Effect direction (mostly) consistent with price.– Existence consistent with social influence.– PRICE MATTERS AND NEIGHBOURS MATTER!

Implications

• Volumetric pricing has an influence– All else equal, 3 of 4 undertake one more

conservation activity indoor and one outdoor.• Neighbour effects powerful.– Price effect not dominant.

• Policy can use neighbour effect– Identify ‘good’ behavior and recognize locally– Provide comparison info vs good behavior.