The design of climate-adaptive water subsidies: financial incentives for urban water conservation in Morocco

In a 500-household pilot, we tested an innovative approach to water demand management, implemented in collaboration with a water utility in a large city in the Middle East and North Africa (MENA) region. We provided a novel intervention, called a Water Savings Credit (WSC), which granted participant...

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Bibliographic Details
Published in:Journal of water, sanitation, and hygiene for development sanitation, and hygiene for development, 2023-06, Vol.13 (6), p.424-432
Main Authors: Burt, Zachary, Leal, Susan, Workman, James, McElroy, Michael, Bouhia, Hynd
Format: Article
Language:English
Subjects:
climate adaptation
Climate change
conservation-oriented pricing
demand management
Economic development
Economic growth
Elasticity of demand
Electric rates
Energy consumption
Households
Incentives
Intervention
Low income groups
mena
Political factors
Politics
Price elasticity
Production costs
Rain
Rebates
Subsidies
subsidized water services
Urbanization
utility policy
Water
Water conservation
Water consumption
Water demand
Water scarcity
Water shortages
Water utilities
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Summary:In a 500-household pilot, we tested an innovative approach to water demand management, implemented in collaboration with a water utility in a large city in the Middle East and North Africa (MENA) region. We provided a novel intervention, called a Water Savings Credit (WSC), which granted participants volumetric rebates on their water bills for their reductions in water consumption. WSCs were effective at encouraging conservation in our pilot in Marrakech. Our approach has the benefits of a price incentive, without the political risk of a tariff increase. For urban water utilities that provide highly subsidized services, this approach could ultimately pay for itself, or potentially result in net financial savings. Our approach may be especially effective in the countries of the MENA region, as the region has a high rate of subsidization for water services, and because it is facing increasing water scarcity from economic growth, urbanization, and climate change.
ISSN:2043-9083
2408-9362
DOI:10.2166/washdev.2023.236