| Abstract: | This study examines the economic efficiency of implementing a residential water conservation program in a small Pennsylvania public water utility. Local demographic data and results from similar programs elsewhere were used to estimate potential water conservation for three programs: rebates for low-flow toilets, rebates for high-efficiency washing machines, and in-home water audits. Future water supply and wastewater treatment demand were estimated. The net present value of constructing, operating, and maintaining new capacity infrastructure (water supply, water storage tanks, and wastewater treatment plant capacity), as well as the costs of the conservation programs, was calculated for a range of scenarios that included future demand growth, construction costs, interest rates, and levels of participation in the conservation programs. Results indicate that investing in residential water conservation would be cost-effective for a small number of scenarios that generally combine higher growth rates, higher interest rates, higher construction costs, and relatively modest public participation in conservation. The results are affected by the timing of necessary supply-side investments relative to the most significant water conservation gains, the relatively inexpensive local water supply costs, and the relatively high local wastewater treatment costs. Water conservation might be cost-effective for a wider range of conditions in communities facing scarce and expensive water supply options. |
