KATIONAL BUltJCAX} or BTAifOAMDa

UBBAMT

NBSIR 80-2119

STATE-OF-THE-ART SUMMARY OF

INCENTIVES FOR RESIDENTIAL WATER

CONSERVATION

NOV ? 4 1980

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Jacqueline Elder

Center for Building Technology

National Engineering Laboratory

National Bureau of Standards

U.S. Department of Commerce

Washington, D.C. 20234

October 1980

Prepared for; Office of Policy Development and Research

Department of Housing and Urban Development

Washington, D.C. 20410

U.S. DEPARTMENT OF COMMERCE, Philip M. Klutznick, Secretary

Luther H. Hodges. Jr., Deputy Secretary

Jordan J. Baruch, Assistant Secretary for Productivity. Technology, and Innovation

U . 5. NATIONAL BUREAU OF STANDARDS, Ernest Ambler, Director

ABSTRACT

Water conservation programs are being discussed and implemented throughout

the country. It appears, however, that unless there is a water crisis,

these programs have little effect on domestic consumption. Why have water

conservation programs been ineffective? What incentives exist for the

individual homeowner to conserve water? This report addresses some programs

and techniques that have been developed to encourage residential water con- servation, Energy conservation techniques that appear to be directly relevant to water conservation have also been included. Specific areas covered

are: consumer education and information programs, feedback techniques,

possible Incentives in mass-metered residences, and the impact of pricing

on water consumption. An extensive bibliography is included.

Key words: Consumer education; energy conservation; feedback; incentives;

metering; rate structures; water conservation.

iii
PREFACE

This report is one of a group documenting National Bureau of Standards

(NBS) research and analysis efforts in developing water conservation

test methods, analysis, economics, and strategies for implementation

and acceptance. This work is sponsored by the Department of Housing

and Urban Developraent/Of f ice of Policy Development and Research under

HUD Interagency Agreement H-48-78.
TABLE OF CONTENTS

Page

ABSTRACT iii

Preface iv

1. INTRODUCTION 1

1.1 Organization of the Report 1 1.2 Scope of the Report 2

2. CONSUMER EDUCATION AND INFORMATION 2

2.1 Response to Immediate Shortage 5 2.2 Long-Range Programs 6

2.3 School Programs 7 2.4 Field Studies 8

2.5 Effectiveness of Consumer Education Programs 10

3. FEEDBACK 11

3.1 The Psychological Literature 12

3.2 Energy Conservation Research 14

3.3 Feedback and Goal Setting 15

3.4 Feedback and Financial Incentives 15

3.5 Feedback and Water Conservation 16

4. INCENTIVES IN MASS-METERED RESIDENCES 17

5. OTHER STUDIES ON POSSIBLE INCENTIVES 18

6. PRICING SYSTEMS 18

6.1 Metering 20

6.2 Increasing Block Rate 21

6.3 Peak Load or Seasonal Rate 22

6.4 Price and Conservation 22

7. SUMMARY AND CONCLUSIONS 23

8. REFERENCES AND BIBLIOGRAPHY 25

8.0 General References 25

8.1 References for Section 1 26

8.2 References for Section 2 26

8.3 References for Section 3 28

8.4 Preferences for Section 4 29

8.5 References for Section 5 29

8.6 References for Section 6 30

V
LIST OF TABLES

Page

Table 1: Material Design and Production Costs 4

Table 2; Description of Pilot Programs 9

Table 3; Summary of Pricing Systems 19
1. INTRODUCTION

"We can no longer expect an endless supply of cheap, clean water at the

twist of a faucet" (Omang, 1980).*

Some areas of the country are currently experiencing water shortages. In

other areas, communities are trying to cut down costs by delaying the construction of new or expanded sewage treatment plants. With increasing

growth, many cities and towns are approaching storage and supply limitations. These limitations may mean that new customers cannot be provided

with water and sewer service until supplies increase or demand decreases.

The costs of storing, supplying, and treating water are increasing. The

cost of supplying water is directly related to the cost of energy. "The

fastest growing cost item in the nation’s water budget is the energy needed

to pump water from one place to another" (Milne, 1976, p. 11). The Individual

homeowner experiences the relationship between energy costs and water costs

when he uses hot water. The homeowner may pay more for the energy to heat

the water he uses than he pays for the water itself (Milne, 1976).

For these and other reasons, water conservation programs are being

discussed and implemented throughout the country. It appears, however, that

unless there is a water crisis, these programs have little effect on domestic

water consumption (Kudrna and Injerd, 1979). Why have water conservation

programs been ineffective? V7hat incentives exist for the individual

homeowner to conserve water?

This report addresses some programs and techniques that have been developed

to encourage residential water conservation. Energy conservation techniques

that appear to be directly relevant to water conservation have also been

includ ed

.

1.1 ORGANIZATION OF THE REPORT

Sections 2 through 6 each consider a program or technique which might

encourage water conservation.

In many instances, the consumer lacks information about how much water

particular appliances use or how daily habits affect water consumption.

Section 2 looks at education and Information programs which have been developed to address these issues.

Energy conservation studies have shown that providing an individual with

knowledge (feedback) of the rate at which he is consuming energy will often

encourage a reduction in energy usage. The implication of this area of

research for water conservation is explored in Section 3.

* The references are given, by Section, in Section 8.

1
Individuals living in mass-metered residences do not directly experience

the consequences of consumption in the form of a water bill. Possible

incentives to encourage conservation among this group are discussed in

Section 4,

Section 5 looks at other research that has been conducted on possible

incentives for conservation.

Section 6 examines the Impact of pricing on water consumption.

1.2 SCOPE OF THE REPORT

This report covers incentives for residential water conservation.

Information was obtained from various sources ranging from published reports

to individual discussions. An extensive literature review was undertaken,

initially concentrating on utility company and water-related publications

and finally expanding to include relevant energy conservation and psychological studies.

Since most of the experience and information concerned with motivating

people to conserve water and, to a lesser extent, energy, is quite recent

and has not yet been published, a substantial portion of the information

provided in this report was obtained through personal interviews with

utility company representatives, state and local officials, and individual researchers.

The examples of programs and materials provided throughout the report

are by no means exhaustive, but are meant instead to be representative

of the types of programs currently being developed and implemented. Many

of these programs have been undertaken without systematic evaluation of

their effects and do not have quantitative results associated with them.

2. CONSUMER EDUCATION AND INFORMATION

Page (1977), stated that "the parallel is inescapable: Like energy, water

is an environmental problem, a technological problem, and an attitudlnal

problem" (p. 9). Consumer education programs are aimed at changing attitudes and behaviors; they are based on the premise that individuals will

change their water-wasting habits once they are made aware of them. A

readership questionnaire in the August 1978 issue of Communicator found

that most of the respondents thought public education was the fairest way

to achieve conservation (Meyer, 1978).

Consumer education programs have been developed and implemented by utility

companies, government agencies, and consumer and environmental groups.

The most extensive and widely known programs have been developed by the

utilities

.

2
James Lattie, Public Information Officer of the East Ray Municipal Utility

District (E.B.M.U.D), discusses the objectives of consumer education

programs

.

"For a drought-related public information program, the goals are fairly

specific: Thorough public understanding of the nature and extent of the

problem; awareness of how the regulations of a rationing or restriction

program will affect individual customers; understanding of what customers

can and cannot do to meet the requirements; what the economic costs will

be to them, particularly including some understanding of why the water bill

does not go down when the consumption goes down. There will also probably

be a number of peripheral things the public should know or will want to

know, such as the relationship between energy and water conservation, how

to read a water meter, how to understand the information on their bill

more completely, and how to look for ’leaks'" (battle, 1977, pp. 46 and

47).

If there is no immediate water crisis, officials may want to consider a long-range continuing program with the following goals: "increased public

awareness of the nature of domestic water supply systems and the complexity

of the problems they face in meeting the demand for water; recognition

of the desirability of water conservation; understanding of the economic

and other costs and consequences of alternatives to water conservation;

and perhaps other areas of concern as appropriate to individual water

agencies..." (Lattie, 1977, p. 46).

Lattie (1977) summarizes by emphasizing the following:

"It does not matter what kind of voluntary program is requested, what kind

of mandatory program is ordered, or what rate schedule is adopted, if it

is ineffectively communicated to the public, it will be an ineffective

program" (p. 46).

Whether a public information program is in response to an immediate crisis

or a long-range need for water conservation, according to Lattie there are three means of informing the public: direct mail, news media, and personal

contact. Direct mall programs include inserts with the regular bill or

a newsletter which may be mailed with the bill or separately. A separately

mailed newsletter has the disadvantage of requiring additional postage,

but the advantage that it can be sent to consumers who are not customers,

such as apartment residents. News media programs include news releases,

public service announcements, and press conferences. Personal contacts

range from telephone calls to plant tours, speakers for school and service

organizations, community meetings, task forces, and special events such

as "Camel Day" in which the Washington Suburban Sanitary Commission asked

customers to conserve as much water as possible in a 24-hour period.

Utilities should consider employing a variety of programs since no one program will reach all the people. Lattie also empaslzes that the cost

of different programs will vary depending upon a number of factors, but

he has developed the attached table as a guideline (see Table 1).

3
Table 1: MATERIAL DESIGN AND PRODUCTION COSTS*

Printed Materials Design Printing Quantity

Newsletter $ 100-500 $ 25-300 1000

Bill Inserts 200-700 6- 25 1000

Slogan Stickers 300-700 16- 20 1000

Lapel Buttons 50-400 70-100 1000

Truck Decals 50-200 1- 1.30 each

Key Chains 100-400 130-200 1000

Litter Bags 50-400 50- 55 1000

Matchbooks 0-100 13- 16 1000

Posters 300-700 80-100 1000

Bus Posters 300-700 20-100 1000

Broadcast Materials Production Per Print

Television Public Service

Announcement/30 seconds $ 400-15,000 $ 8-12

Radio Public Service

Announcement/30 seconds 50- 200 1.50

Motion Picture/10 minutes 5000-25,000 50-100

*Source: Lattie, J., Public education for water conservation, in

Community Water Management for the Drought and Beyond; A Handbook

for Local Government , California: The Governor's Office of

Emergency Services, July 1977.

4
Many consumer education programs have been developed to encourage water

conservation. Some of these programs are the direct result of an Immediate

water shortage; others are based on a perceived long-range need for

conservation.

2.1 RESPONSE TO IMMEDIATE SHORTAGE

Perhaps the best known example of a consumer education program developed

In response to an Immediate crisis occurred In northern California. During

the water shortage In northern California In early 1977, both voluntary and

mandatory conservation programs were Instituted. Mandatory conservation

usually Involved either a mandated percentage reduction from the previous

year's use, or a quota, expressed In gallons per day per person or per

household.

In conjunction with mandatory restrictions, outdoor water use was restricted

and landscape use was banned or limited to early morning or early evening

on specified days. One hundred and fifty communities were ultimately under

mandatory conservation, representing 1/3 of California's population or

6 1/2 million people.

In addition to these programs, the California Department of Water Resources

(DWR) established a drought Information center which provided the following

four basic services:

(1) answer telephone Inquiries

(2) respond to written communications

(3) document the drought and mltlgatlve measures

(4) maintain contact with other agencies concerned

with the drought.

DWR also set up a speaker's bureau, published a drought bulletin, and

coordinated the distribution of water conservation kits. DWR began a statewide water conservation education program In cooperation with the State

Department of Education and local water suppliers and schools (see

Section 2.3).

Another example of response to the drought Is provided by St. Helena,

California. St. Helena developed a program to encourage Individual conservation. The program consisted of the following elements:

The local newspaper and radio station publicized reservoir capacity,

average dally use figures, and needed cutbacks.

° The Public Works Department distributed water conservation kits

containing dye tablets for checking for toilet tank leaks, plastic bottles

used to displace water In the toilet tank, and showerhead flow restrictors.

5
° The Public Works Department encouraged large water users (wineries,

other business, schools) to make significant cutbacks in water consumption.

Water use was reduced 47 percent and the city saved $140 a day in water

purchase costs (Page, 1977),

As a result of the California experience, John Nelson (General Manager,

North Marin County Water District) stresses the need for consumer education during a crisis: "Of all the debate that has gone on regarding the

various rationing programs, most utilities that have gone through it agree

on one key point; namely, rationing can only be achieved through the voluntary commitment of the consumer, and to earn that commitment, the utility

must communicate the shortage problem and required rationing solution to

the consumer via the media in a lucid and truthful fashion" (Nelson, 1979,

p. 2)

.

2 . 2 LONG-RANGE PROGRAMS

Long-range programs are often aimed at developing a "conservation ethic." i By fostering conservation, officials hope to ultimately defer or eliminate ' the expense of expanding supply, storage, and treatment facilities. '

David Farrell (Coordinator, Illinois Interagency Water Management /Conservation j Committee) describes the purpose of the Illinois water conservation program ; as not just to change behavior (which may serve as only a short-term solution), but to change the circumstances in which behavior occurs. Farrell

emphasizes that when there is not a water crisis, most individuals will

forget about conservation and return to old consumption patterns. Farrell , hopes to encourage people to make hardware changes that will save water

even when conservation is not an issue.

To help make it realistic for people to change the circumstances of water

use in their homes, Farrell is urging the retail hardware industry to stock

a variety of low-cost devices, new and retrofit, that reduce flow on faucets,

in toilets, and on showerheads.

In the state of Illinois, public education activities have Included:

distribution of bumper stickers, distribution of instructions for detecting

leaks in toilets, presentations, regional conferences, dissemination of a pamphlet giving reasons for water conservation.

Madison, Wisconsin also has a long-range conservation program — one based

on long term fiscal planning. "Analysis showed that by postponing construction of certain supply facilities and by postponing certain electrical demand

costs, customers could save substantially with only minor inconvenience"

(Delbert, 1978, p. 2). In 1975, a conservation program was initiated to

shift the lawn sprinkling load to off-peak hours. The necessary information

was communicated in a number of ways: displays, school talks, hose tags,

bus posters, billboards, radio and television spots, brochures. The effect

6
of the program was to lower demand during peak evening hours, thus allowing

the existing system to meet current demands as well as demands anticipated

in the near future.

A sewer crisis prompted a water-saving program by the Washington Suburban

Sanitary Commission (WSSC). WSSC compiled a handbook on ways to save water and reduce waste and distributed the handbook by mail to its customers. A similar handbook was designed for apartment dwellers. Other

conseirvation activities have included: workshops for property managers,

presentations to civic and service organizations, compilation of product

data on water-saving appliances, television and radio spots, and a field

test to determine the performance of retrofitted water conservation devices.

(See Section 2.5 for a description of this study.) In addition "Bottle-Leak

Detection Kits" were distributed. The kit contained three plastic quart

bottles for water displacement in the toilet tank, two dye tablets for

making a leak check of toilets, and an instruction booklet Informing cus- tomers how to use the bottles and the dye tablets and also providing

water-saving hints. Since then, WSSC has made available shower control

insert devices that reduce shower flow to 3 gallons per minute (gpm)

.

The kit was offered to customers through a flyer in the water-sewer bill.

Most recently, a handbook on outdoor water use, "Keeping the Garden Green"

has been distributed. Officials at WSSC stress that the rewards of their

program result not only from reduced water usage but also from increased

consumer awareness of water as a limited and valuable natural resource.

2.3 SCHOOL PROGRAMS

School programs are an important component of many long-range water

conservation programs. The developers of school programs hope that the

children will take the knowledge they have gained at school and apply it

at home, thereby influencing their parents.

One example of a school program is provided by the East Bay Municipal

Utility District (E.B.M.U.D.) in California. In 1972, E.B.M.U.D. initiated

Project WATER (Water Awareness through Education and Research). The program

is aimed at elementary and secondary school children and attempts to foster

an understanding of the role of the water utility as well as an awareness

of the economic and environmental costs of supplying water. Materials

have been developed for students at the following levels:

Primary Level — "Water Play" is a 16-page color booklet of classroom

games and activities stressing an awareness and appreciation of water.

Upper Elementary Grades — "Water, Where It Comes From and Where It

Goes" is a booklet aimed at developing an awareness of water by employing

a low-keyed approach to understanding the water supply system. Also developed for this level is "The Official Captain Hydro Water Conservation Workbook," a 32-page workbook using a comic book format and featuring the

heroic Captain Hydro battling the Water Bandit. The workbook begins by

7
introducing water and water conservation and then is divided into* four

curricular segments i mathematics, science, social science, and the

humanities and the arts.

Secondary Level — Three publications have been developed for this

level; each employs a news magazine format and focuses on problem solving

in one curricular area. "Water Conservation in the Community" covers the

social sciences, "Water Conservation Through Science" emphasizes the scientific aspects of drought, and "Water Conservation at Home" includes the areas of home economics and Industrial arts.

The materials mentioned above are distributed only to teachers and

administrators who specifically request them. In addition to these cur- ricular materials, E.B.M.U.D. has developed supplementary materials (films,

buttons, posters, etc.) and conducts filter plant tours stressing water

conservation.

Other states and localities also have school programs, one of the most

extensive being in the state of Illinois.

2.4 FIELD STUDIES

Field studies have been undertaken in response to crisis situations and as

a part of long-range consumer information programs. Results have been

mixed and often difficult to measure due to a number of uncontrolled

variables.

The Marin Municipal Water District in California distributed water saving

kits in the form of "doorknob hangers." Each kit contained a low-flow

showerhead (to reduce flow to 3 gallons per minute), two 1-quart toilettank displacement bottles (used together they saved 1/2 gallon of water per

flush), leak detection dye tablets, hints on finding and repairing leaks,

hints on home irrigation, and other literature illustrating possible savings.

These kits were distributed by teams of male/female college students dressed

in blue pants and white shirts with the legend "Water Conservation Team."

The team would install the devices at the consumer's request. A 20 percent

sample survey at the conclusion of the program indicated that the showerheads

were being used in 40 percent of the homes and the bottles in 60 percent.

In 1977, the California Department of Water Resources conducted several

pilot studies to determine the effect of toilet dams and shower restrictors on water and energy consumption, to determine the most successful and

cost, effective means of distribution, to evaluate the relative metits of

offering the devices free or selling them, and to measure public acceptance

of the devices. Table 2 describes the pilot programs undertaken.

These pilot studies yielded the following results:

8
Tabic 2. DESCRIPTION OF PILOT PROGRAMS*

Pilot Area

Type of

Community

Number of

Households

Water Supply

Condition

Method of Kit

Distribution

Free/

Purchase

Type of

Promotion

Campaign

San Diego

Metropolitan

Area

Urban 370,000 No rationing Mass; door-todoor with personal contact,

depot

Free Information

post cards,

paid ads,

public

relations

activities

Santa Cruz

County

Urban and

rural

60,400 45 percent of

County had

rationing or- dinances to achieve up

to 30 percent

reduction

Depot and home

delivery V\/ith

free installation upon

request

Free Public

relations

activities,

home

canvassing

City of

Sanger

Small agricultural

community

3,000 No rationing Home delivery

upon request

Free Information

post cards

El Dorado

Irrigation

District

Small urban

and rural

13,300 Pricing

structure

and rationing

ordinance

designed to achieve 50

percent

overall

reduction

Depot Purchase Leaflets, paid

ads in newspapers, public

relations

activi ties

City of

El Segundo

Urban 6,000 Water

rationed;

ordinance

designed to achieve 10

percent

reduction

Mobile sales

depot

Purchase Paid ads in

newspapers

,

mass mailing

newsletters

Community

of Oak Park

Small

suburban

753 No rationing Free installation service

Free Public

relations

activities

* Source: A Pilot Water Conservation Program , Bulletin 191, Sacramento, California: Department

of Water Resources, October 1978.

9
"In San Diego, the nost cost effective way (the nost savings per

progran dollar) was to hang tree device kits on each doorknob. ..he depot

method, in which residents could pick up free devices, was a close second

in cost effectiveness. However, the depot method included a substantial

amount of free labor that — if included would have made depots much

less cost effective.

"Overall devices were well received. Projecting the results of the

best device (dams) and best method (mass distribution in San Diego), a 35 percent installation rate can be expected for toilet devices and a 10 percent rate for shower restrictors, given similar attitudes and conditions" ( A Pilot h'ater Conservation Program , p. 8).

In 1972, the Washington Suburban Sanitary’ Commission (WSSC) initiated the

Cabin John Drainage Basin Project to evaluate the effectiveness of several

commercially 'available water-saving devices. 0\'er 1000 single-family homes

were involved in the four-year study. Toilet insert devices were placed

in each of the homes (four different types were used) and 3-gallon per

minute shower flow control devices v:ere placed in an additional 25 homes.

The homeowners also received various WSSC publications stressing water

conservation. Meter readings for the area indicated a statistically

significant reduction in water use over the four-year study period.

At the conclusion of the study, a questionnaire was mailed to 100 randomly

selected single-family homes. The responses indicated that "significant

numbers of the toilet insert devices were removed by the homeowners in

the four years following their installation... Reasons for the removal

of the devices varied, but in all cases the necessity of flushing the

toilet twice to remove solids was the principal complaint" (Sharpe and

Sm.ith, 1978, p. 95). Even though a large number of devices were removed,

the data still indicated a significant reduction in water use. "This

reduction can be attributed to a change in water using habits to use

less water... Reduction of lam and garden irrigation is clearly the

most frequently mentioned habit change while doing only full loads in

clothes and dishwashers, taking shorter showers, and repairing leaks were mentioned frequently..." (Sharpe and Smith, 1978, p. 96).

2.5 effecti\ti:ess of co::su:er education proc-pjj^s

How effective have these consum.er programs been?

The evidence seems to support the short-term effectiveness of consumer

education programs especially in crisis situations. Hoffman, Glickstein,

and Liroff (19/9) assessed institutional and consumer response to measures

taken to mitigate the effects of the drought in California. A key finding was the fact that "research indicates that the willingness of residential, and to a less extent commercial and industrial, customers to

restrict their water consumption is influenced more bv the degree to which

they believe there is a shortage requiring conservation than bv anv other

factor (p. 360). The researchers cite three reasons as to why Bay area residents believed in the necessity for conservation. First, from past

1C
experience and knowledge of weather patterns, residents believed in the

possibility of drou^t and, photographs of reservoirs made the water

shortage highly visible. Second, the behavior of the water suppliers

was consistent with the existence of a drought and finally, stories by

the news media reinforced the seriousness of the drought.

The authors also concluded "that large-scale reductions in water use were

achieved even in cases where more than 50 percent of the water district's

customers perceived the district's rationing policies as fundamentally

unfair. Hence, it would seem that once the public is convinced there

is a shortage, they will conserve whether they feel the rationing plan

is fair or not" (p. 361).

Finally, the authors emphasize that "behavioral changes. . .were thought

to be three to four times as effective as structural devices in lowering

residential consumption during the drought" (p. 362).

Although the California program was extremely effective, only time will

indicate the long-term effects.

Many of the communities with long-term conservation programs have cited

successful outcomes. Elmhurst, Illinois was able to avoid the expense

of sinking a new deep well. Madison, Wisconsin was able to shift outside

water use to off-peak hours thus enabling the postponement of major construction. Representatives of the Washington Suburban Sanitary Commission

emphasize that consumer education programs do not always have an immediate

impact, but may serve to foster a conservation ethic which will encourage

individuals to pay increasing attention to water-use habits. School

programs are certainly aimed at long-range awareness.

Kudrna and Injerd (1979) provide a more negative point of view, "...overall

the in^)act of adult water conservation education in Northeastern Illinois

has probably been minimal. Our conclusion is that an effective adult

water conservation education program, without an attendant water shortage

crisis, is very difficult, if not impossible, to accomplish" (p. 7).

Finally, in evaluating these programs, we should bear in mind the question

asked by Grear (1975). "Where do we go from here on the national level?

Do we promote a national education campaign aimed at changing human behavior

(water consumption behavior) and promoting the retrofitting of "band-aid"

type water saving appliances, or do we go with plumbing and housing code

changes requiring the installation of the most efficient water conserving

plumbing devices such as aerator faucets, shower flow control devices,

water saving toilets, or flush valve toilets in all new housing?" (p. 6).

3 . FEEDBACK

For whatever reason an individual wishes to conserve water, it is difficult

for him to do so without Information about his rate and pattern of

11
consumption. Consumer education materials (see Section 2) provide some

of this information in broad, general categories. Feedback techniques

provide more personalized information.

Feedback is a process of providing an individual with data, information,

or other appropriate "signals" about his performance in a particular

area, in this case in the area of water or energy consumption. The

information about performance provides the basis for possible changes

in behavior, i.e., alteration of consumption patterns.

The water bill is a form of feedback, although the information provided

by it is probably too general and too far removed in time from the actual

consumption to enable the consumer to effectively alter his water use. The water meter (see Section 6.1) can provide more immediate feedback,

but is often not readily accessible and probably does not give specific

enough information to enable the consumer to determine the effects of

particular devices or habits on consumption.

Feedback or knowledge of performance is one of the incentives that may

be adopted to encourage water conservation. The psychological literature

indicates that an individual’s performance improves when information is

given about that performance. In addition, research in energy conservation

has employed feedback with some encouraging results which should apply

fairly directly to the area of water conservation.

3.1 THE PSYCHOLOGICAL LITERATURE

For some time now, psychologists have been investigating the influence of

knowledge of performance on performance. "In general, research on the

problem of knowledge of performance involves determining the effects of

giving or withholding various kinds of information about performance during

and for varying amounts of time after that performance" (Ammons, 1956,

p. 279). The variables which have been studied include; type of feedback

(verbal, written), at what time during or after performance feedback is most

effective, effect of withdrawal of feedback, and interaction between

feedback and goal setting.

Ammons (1956) reviewed the psychological literature on feedback and

summarized the findings in several statements which he labels "generalizations." The generalizations which are relevant to the area of conservation

include:

° "The performer usually has hypotheses about what he is to do and how

he is to do it, and these interact with knowledge of performance" (p. 281).

This generalization indicates that even if the consumer is given accurate

information about his water consumption and is motivated to conserve, he

needs to be given information and/or training on actual conservation

techniques.

° "For all practical purposes, there is always some knowledge of his

performance available to the human performer" (p. 281). Even if the

12
consumer does not have his water consumption individually metered, he has some information which will help him determine his water consumption and

indicate ways in which he can lower it.

° "Knowledge of performance affects rate of learning and level reached

by learning. Almost universally, where knowledge of their performance is

given to one group and knowledge is effectively withheld or reduced in

the case of another group, the former group learns more rapidly, and reaches

a higher level of proficiency" (p. 283). This generalization suggests that

no matter what means is used to encourage conservation, that means will be

enhanced if it is combined with feedback information.

° "Knowledge of performance affects motivation. The most common effect

of knowledge of performance is to increase motivation" (p. 285). Motivation

is the key to conservation. If feedback increases motivation it may well

become a major element in conservation programs.

° "The more specific the knowledge of performance, the more rapid the

improvement and the higher the level of performance. Other things being

equal, the more exactly a subject knows how he has performed, the more likely

he is to be able to make appropriate corrections" (p. 287). The gross con- sumption figures recorded on the water bill probably do not give the consumer

specific enough information about which habits and devices may be using the

most water to enable him to effectively alter his water usage patterns. The

consumption figures registered on the water meter may also be too general

to provide effective feedback.

° "The longer the delay in giving knowledge of performance, the less

effect the given information has" (p. 287). Again, the water bill which

usually arrives quarterly is probably not sufficient to encourage

conservation.

° "When knowledge of performance is decreased, performance drops.

Whether the drop would bring the performance back to the same level as that

if this lesser degree of knowledge of performance had obtained all along cannot be ascertained..." (p. 290). This generalization suggests that it

probably is not practical to provide feedback for a short period of time

with the expectation that the positive results will continue after the

feedback is discontinued.

° "Where subjects are not being given supplementary knowledge of

performance by the experimenter any longer, the ones who maintain their performance level probably have developed some substitute knowledge of performance" (p. 292). If continuous feedback is not possible, it is important

to determine what substitutes can be developed.

Finally, Ammons raises the question of what is actually meant by

knowledge of performance. "Does it mean just to make the stimuli available

to the subject? Or does it imply something about training him to use the

available information?" (p. 293). These questions have been dealt with in some of the feedback studies in the area of energy conservation.

13
3 . 2 ENERGY CONSERVATION RESEARCH

Ammons (1956) stated that "when the psychologist experiments with knowledge

of performance, he ordinarily sets up a situation in which he compares the

learning of a task or performance changes by a group which receives relatively more information about how it is carrying out the task with the

learning or performance of another group which receives less information"

(p. 279). Most of the feedback and energy conservation research has been

carried out by psychologists and most of the research quite closely follows

the format described by Am.mons.

Seligman and Barley (1977) reported a study in which homeowners, in

physically Identical interior townhouses, were given daily feedback on electricity consumption. Feedback was expressed as a percentage of actual con- sumption over predicted consumption (based on previous consumption corrected

for weather conditions) and this figure was displayed in a case outside

the homeowner’s kitchen window. The results indicated that giving homeowners

daily feedback on their rate of electricity usage was effective in reducing

electricity consumption by about 10 percent. As Seligman stresses, the

study raises a number of questions which need to be answered before feedback

can be considered as an effective incentive for conservation. "How frequently should feedback be given? Who should compute and record the feedback, the people themselves or some outside agency? How salient does the

feedback need to be? Does conservation of electricity stimulated by a feedback procedure generalize to other uses of energy... How long will

the effects of feedback persist after the feedback has ceased? Will displaying the feedback in dollars and cents be more effective than other

modes of information presentation?" (p. 367).

Ramey-Smith and Gagnon (1979) dealt with one of these questions in a laboratory study which looked at consumer response to cumulative (a running

accumulation of the cost of energy consumed), instantaneous (current rate

used to estimate future cost), and projected (previous day’s energy cost

used to estimate future cost) feedback, each presented as dollar and cents

values. Each type of feedback was presented on an hourly, daily, and weekly

basis. Subjects indicated a preference for all time periods of cumulative

feedback. Subjects noted that hourly instantaneous feedback was useful in

providing information about the energy consumption of individual appliances,

but stressed that this information could be provided by sources other than

a feedback device.

Seaver and Patterson (1976) investigated the effects of feedback and feedback

with commendation on homeowners’ consumption of fuel-oil. Feedback consisted

of a slip which accompanied the fuel-oil bill and showed the customer’s

rate of use compared with the previous winter’s rate of use. Feedback with

commendation provided those customers who reduced consumption with a decal

on which the words "WE ARE SAVING OIL" were printed. The feedback plus

commendation group had a significantly lower consumption rate than either

the feedback group or a control group receiving neither feedback nor commendation. The feedback group and the control group showed similar

consumption rates.

14
While Seaver and Patterson have shown that commendation combined with

feedback can lead to conservation, other researchers have argued that feedback is not effective unless it is combined with goal setting or with

financial incentives.

3.3 FEEDBACK AND GOAL SETTING

In a study by Becker (1978), the researchers concluded that feedback is

not effective unless it is accompanied by a serious conservation goal.

Some homeowners were asked to reduce electricity consumption by 2 percent,

while others were asked to achieve a reduction of 20 percent. Feedback

was provided to both groups three times a week. The group that received

both feedback and the more difficult goal used 13 percent less electricity

than a control group that was given neither a goal nor feedback. The

2 percent feedback group did not differ significantly from the control.

3.4 FEEDBACK AND FINANCIAL INCENTIVES

Kohlenberg et al. (1976) reported a study in which feedback plus financial

incentives (a rebate of double the monetary value of the electric bill for

a 100 percent reduction in peaking) was found to be more effective (peaking was reduced about 50 percent) than information or feedback alone in reducing

electrical energy use during peak periods by residential customers. The

researchers also found that removing the experimental conditions caused

energy use to return to patterns exhibited before the experiment began.

The researchers used families who belonged to a conservation club and

stressed that even with the families' obvious motivation to save, dally

patterns represented strong habits and consuming behavior was resistant

to change.

Winett and Nietzel (1975) studied the effects of information (manual

containing energy reduction suggestions), feedback (self-recording form for

monitoring weekly meter readings), and payments (up to $5 per week for

reductions greater than 20 percent) on the consumption of electricity and

natural gas in private residences. One group received information and feedback while another received information, feedback, and monetary payments.

Both groups reduced electricity and gas consumption; the monetary payments

group showed a greater reduction in electricity use. (It should be noted,

however, that both groups received some form of monetary pajnnent since

reduced consumption resulted in a lower utility bill.)

Winett et al. (1978) assigned volunteer households to one of five

experimental groups: A high rebate group in which participants received

conservation information, weekly written feedback on their electricity use,

and were eligible for monetary rebates of 30 cents for each 1 percent

reduction in weekly kilowatt-hours of electricity used compared to average

use during the previous summer; a low rebate group which was the same as the high rebate group except rebates amounted to 1.3 cents for each 1 percent

reduction; a weekly feedback group in which participants also received

information but not rebates; an Information group; and a control group.

The high rebate group reduced electricity use by about 12 percent over

the course of the study.

15
The low rebate group reduced consumption only slightly, the feedback and

information group showed no change, and the information only group showed

an increase in use.

Hayes and Cone (1977) employed monetary payments (a maximum of $15 at the

end of one week for a 50 percent or greater reduction in electricity use),

energy information (a poster describing ways to reduce consumption and indicating the electricity consumption of household devices), and daily feedback

(a flier showing amount of electricity consumed the previous day, cumulative

consumption for the week, projected consvunption for the v;eek, percent above

or below baseline represented by the projected figures) to reduce electricity

consumption in a student housing complex. The results indicated that monetary payments for reduction of energy use were more effective than feedback

or information. Information had only a temporary effect which was no greater

than telling subjects their use was being monitored. This finding is particularly important in light of the fact that utility companies and local

governments seem to rely heavily on information dissemination and consumer

education to encourage conservation.

3.5 FEEDBACK AND WATER CONSERVATION

McClelland (1978) stresses that the unique feature of feedback is that "the

information provided is completely personalized, which should make that

information both command more attention and convey the nature of the current

incentive structure more effectively" (p. 12). Water users already receive

feedback in the form of the bill but the bill comes too infrequently to provide effective feedback. Even if more specific (dollars and cents figures)

and more frequent information is given to the consumer, it is not clear

that this information will provide a long-term incentive for water conservation. Water meters can provide feedback if the customer has an accessible

meter, knows how to read the meter, is motivated to take regular readings,

and knows how to interpret the readings.

To date no significant studies on feedback and water conservation have been

published and the research on feedback and energy conservation raises more

questions than it answers. Feedback seems to encourage conservation on a short-term basis, but it remains to be determined how long feedback continues

to provide an incentive for conservation. The research on feedback and

financial incentives indicates that more incentive than just the savings

on the monthly bill may be required. The relationship between goal setting

and feedback needs to be further explored — it is not clear whether goal

setting is an inherent part of feedback or if it should be dealt with

separately

.

In summary, feedback appears to be a promising incentive, but the issues

mentioned above need to be studied further and feedback needs to be examined

specifically in relation to water conservation.

16
4. INCENTIVES IN MASS-METERED RESIDENCES

Several studies have looked at possible incentives in mass-metered

residences. In these situations, individuals do not receive the feedback

on consumption rates which is normally provided by the bill or the water

meter. Also by not paying directly for the water or energy consumed these

individuals do not experience the consequences of consumption. The studies

reported here are all from the area of energy conservation.

Heberlein (1975) distributed informational material on electrical energy

usage to apartment dwellers. One group received information designed to

encourage increased consumption; another group received Information designed

to discourage consumption; a third group served as a control. Energy usage

did not change as a result of the informational material.

Newsom and Makranczy (1978) looked at the use of information and feedback

to encourage energy conservation by students living in nine university dormitories. "At the end of a baseline period, residents of three dormitories

were mailed a flyer containing the average monthly cost of electricity

to the university, ways to reduce electricity consxjmptlon, and a request

for students to use less electricity. Residents of three other dorms were

mailed an Identical flyer and weekly feedback sheets containing the amount

of electicity consumed in their dormitory, the percent above or below baseline consumption, and the amount of increased cost or savings to the university. The three remaining dormitories served as controls..." (p. 219).

The results "suggested that conservation information alone and information

plus feedback are ineffective in modifying electricity consumption of

residents in mass-metered dormitory complexes" (p. 219).

Based on these results, the researchers decided to investigate the effects

of a monetary incentive. Residents of two dorms were sent a flyer containing

rules for an energy conservation contest and an announcement that each house

in the winning dorm would receive $30. Residents of two other dorms received

the same rules and an announcement that each house in the dorm would receive

$30 which was to be raffled to an individual. Two additional dorms served

as controls. Electricity consumption in the contest and contest-raffle dorms

was lower than in the control dorms. The researchers continued to monitor

consumption after the study was completed and found that somewhat lower

consumption rates continued in the contest and contest-raffle dorms.

Winett (1978) was able to alter energy consuming behavior in classroom

buildings by posting attractive signs. The signs requested a specific

action — the turning out of lights in unoccupied rooms. More general signs

urging energy conserving behavior had not been effective.

These studies highlight the difficulties encountered in attempting to

encourage conservation in mass-metered residences. They suggest that con- sumer information materials by themselves are likely to be ineffective in

promoting water conservation in these residences. The Winett study does

17
suggest, however, that well-designed posters or signs addressing specific

water consumption behavior and placed near the source of that behavior

may be effective.

5. OTHER STUDIES ON POSSIBLE INCENTIVES

A nimiber of other incentives have been explored in preliminary studies

on energy consumption. Pallak and Cummings (1976) measured electricity

and natural gas usage for three groups. The first group agreed to participate and expected to be publicly Identified as attempting to conserve

energy, the second group made a private commitment to the researchers,

the control group was not interviewed. The public commitment group had

a lower rate of increase for both natural gas and electricity consumption

than did either the private commitment group or the control group. The

researchers concluded that increased attention to energy use levels leads

to increased conservation. This finding agrees with the feedback research

where it was noted that conservation increased when the goal set required

a greater commitment on the part of the consumer.

Hass and Bagley (1975) conducted a study the results of which Indicated

"that, although increases in the perceived likelihood of an energy shortage

had no effect, increments in the perceived noxiousness or severity of an energy crisis strengthened intentions to reduce energy consumption" (p. 754).

Along these same lines, Gottlieb and Matre (1976) explored energy conserving

behavior as it related to people's conception of the availability of energy.

The study explored the reactions of Texans to the 1974 oil embargo. The

results indicated "that differences in energy conserving behavior were dependent on differences in the degree to which the energy crisis was credible and on differences in socioeconomic status. Many of those who could

afford to pay the costs of higher priced energy continued their consumption

patterns pretty much as before the period of shortages. Many voluntary

conservation efforts were reported, but conceptions of what was normal,

proper, or necessary consumption requirements seemed strongly Influenced

by accustomed patterns of use" (p. 428).

This finding agrees with the studies reported in Section 6 which Indicate

that increased price does not always provide a strong incentive for

conservation.

6. PRICING SYSTEMS

In the past, rate structures provided a declining rate for customers with

heavy demands, then a uniform rate was adopted, and now rates are moving

in the direction of imposing a surcharge on heavy demand customers. These

new rate structures are seen as providing an incentive for water

conservation. Table 3 summarizes the variety of pricing systems currently

available.

18
Table 3. SUMMARY OF PRICING SYSTEMS*

Type of

System Definition and Comments

Degree of

Equity

Discouragement

of Waste

Metering 1. Not generally thought of as a pricing met^hod, it is essential to

effect most pricing programs.

2. Installation of meters in nonmetered

areas usually results in decrease in

consumption of at least 25%.

Required

for

Equity

Yes

Flat Rate 1. Usually found in unmetered areas;

each customer is charged the same regardless of the amount of water

used

.

2. Sometimes the rate is varied

according to the size of delivery

line.

3. Easy for utilities to manage.

Not

Equitable

No

Declining

Block Rate

1. Customer is charged a certain

amount for an initial quantity or

"block" of water. The rate for

succeeding blocks decreases with

each block.

Not

Equitable

No

Uniform Rate 1. Each unit of water costs the same. Equitable Minor

Increasing

Block Rate

1. Customer is charged a certain

amount for an initial quantity

or "block” of water. The rate

for succeeding blocks increases

with each block.

Equitable Yes

Peak Load,

or Seasonal

Rate

1. Customer is charged a uniform rate

for a certain quantity of water.

This quantity is usually based on the reduced lawn irrigation season

use or on the average demands on

the water distribution system.

2. Quantities used above the amounts

determined in (1) are charged at a higher rate.

Equitable Yes

* Source: Water Conservation in California, Bulletin 198, State of California: Department

of Water Resources, May 1976.

19
Metering is required for all pricing systems except a fixed charge per

period (flat rate). Two rate structures are considered as discouraging

waste; the increasing block rate and the peak load or seasonal rate. These

rates have yet to be fully tested; they are relatively new and have been

implemented on a limited basis.

6.1 METERING

Individual residential water meters are relatively new. Many municipalities

installed them in the 1950s and 1960s, and by 1976, over 90 percent of the

municipalities in the U.S. had residential water meters for single-family

homes (Milne, 1976). Apartment houses, however, rarely have individual

meters. "The idea of measuring water and selling it as a commodity based

upon the quantity consumed has developed slowly... The slowness in recognizing water service as a utility, like electricity or gas that can be

paid for on the basis of the amount used, probably resulted from the very

low cost of water" (Smith, 1956, pp. 1227-1228).

The water meter may serve as a crude feedback device, alerting the consumer

to abnormally high water usage patterns. There is evidence that on a community scale the installation of individual meters has been effective

in reducing water consumption. (The variations in savings reported may be

accounted for by the different rate structures which were Imposed following

the installation of meters.)

Smith (1956) cites two examples of water consumption decreasing following

the installation of meters. "When Walla Walla, Wash., was half metered,

for instance, the demand was reduced 20 percent... In Plattsburgh, N.Y.,

in 1953 when the town was half metered, dally consumption had dropped...

as compared to the demand 5 years before when the flat rate [fixed charge

per period] was in effect. This drop... was recorded despite a normal

population increase over the 5-year period" (p. 1230).

A California report (Nelson, 1977) concludes that household savings on the

order of 30 percent can be achieved as a result of metering residential

customers

.

Hanke and Boland (1971) report on the experiences of the water utility in

Boulder, Colorado. "Prior to 1961, the management of this utility relied

exclusively on the augmentation of the water supply and the Imposition of

sprinkling restrictions on summer demands to meet anticipated ’water shortages.' In 1961, however, a major change took place. The utility, in an attempt to meet impending water shortages, looked to price as a means of

managing water demands. Starting in that year, water meters were universally installed in the residential areas of the city, areas previously

billed for water on a flat rate [fixed charge per period] basis" (p. 6798).

A uniform commodity charge was adopted.

"Detailed analysis of both domestic and sprinkling water use for all meter

routes studied gave the same results — a large and consistent drop in

water use immediately following the adoption of a metered rate.

20
Average domestic use fell 36 percent; sprinkling use, corrected for weather

conditions, dropped more than 50 percent. In every case the change was persistent — no significant recovery was noted" (p, 681). This persistent

change was evident during six years after metering was installed.

The authors attributed this persistence to permanent changes such as leak

repairs and also to changes in water consuming habits, particularly in

the use of water for lawn sprinkling. As a part of the water demand

analysis, 180 Individuals living in the study area were interviewed about

their response to the price change. Fifty-one percent responded that they

had increased their conservation efforts when the meters were installed

and they had further intensified their efforts following the first year.

Hanke and Flack (1968) observe that "negative effects from the consumption

of additional units of water will be the only significant incentive to

halt the use of more water" (p. 1339). They go on to state that metering

provides the negative effect of increased cost for increased use, but at

the same time provides the benefit of allowing the consumer to choose

whether or not to incur the increased cost.

In the similar area of residential energy use, more and more cases of

multi-family residences converting from master to individual meters are being cited (Rhoten, 1978). A Federal Energy Administration study ("Does

it pay to stay off master meters?" 1976), indicated that individuals living

in apartment buildings with master meters use 35 percent more electricity

than apartment dwellers who pay for their own electricity. As water becomes

more scarce and costs increase, individual metering in multi-family units

may provi^ie a strong incentive for conservation.

6.2 INCREASING BLOCK RATE

In 1977, the Washington Suburban Sanitary Commission (WSSC) asked a Citizens

Advisory Committee to explore the role of rate structures in reducing water

demand (W§SC, 1977). Following the advice of the Committee, in January

1978, th^ Washington Suburban Sanitary Commission (WSSC) adopted a conservation-oriented water rate schedule. "The rate is of the inclining or increasing type; is based on average daily water use; and has 100 different increments of use... The rate increments were established so that those who

use less water... will pay less for water and sewer service... This approach

to water conservation allows for pricing to complement the water conservation

device program by giving customers an incentive to purchase and install

water saving devices. If the residential customer is motivated by the rate

increase to install such hardware, a permanent reduction in water use is

likely" (Sharpe, 1978, p. 478).

This rate structure change was accompanied by the consumer education program

mentioned earlier (Section 2.2). Officials at WSSC state that conservation

appears to be taking place, although they are not carefully monitoring

the syston to see why or where this is taking place. The new rate structure

caused little initial change in customers' water bills. For this reason.

21
both WSSC and the Citizens’ Committee stress that the new rate structure

probably did not provide any real incentive for consumers to lower

consumption, but instead may serve to discourage increased consumption.

6.3 PEAK LOAD OR SEASONAL RATE

In Dallas in the summer of 1977, a surcharge on monthly consumption was

adopted for water use above a specified level for June through September.

Preliminary results indicate a decline in water demand.

The Fairfax County Water Authority in Fairfax County, Virginia has also

adopted a rate structure which reflects the seasonal nature of costs.

Records showed that customers on the average consumed 1.3 times more water

in the summer quarters than in the winter quarter. It was assumed that

those customers who used more water in the summer were the same customers

who were creating peak demands. An excess use charge is assessed to those

customers whose consumption for both summer quarters exceeds winter quarter

consumption by a factor of 1.3 (Griffith, 1977). As mentioned earlier, the

effects of this and other rate changes have not been systematically

evaluated.

6.4 PRICE AND CONSERVATION

There is evidence that in the past raising the price of water has not always

been an effective means of encouraging conservation. Howe and Linaweaver

(1967) noted that price changes had very little effect on indoor water

consumption. Outdoor water use decreased with increasing price in the

West and less so in the East. The results of a study by Primeaux and

Hollman in 1974 "showed that consumers are relatively unresponsive to price

differences within the price range displayed by the cities in the study

group. Price can be used effectively as a revenue raising device but

probably ineffectively as a rationing device within the current range of

prices" (p. R-144). (The study was conducted in northern Mississippi;

prices for mean levels of consumption ranged from $.30 to $1.65 per 1,000

gallons.) The metering studies cited in Section 6.1 would seem to contradict

these findings and more information is needed on why this is true. It may

be that the meter serves as a feedback device, allowing the consumer to

monitor and adjust his consumption, whereas a rate increase is not

accompanied by enough information to allow the consumer to modify consumption.

Finally, in considering rate changes, utilities must deal with the issue

faced by Marin County and more recently by the Washington Suburban Sanitary Commission (WSSC). In Marin County, conservation was so successful

that income fell off and the utility was forced to raise its rates in order

to obtain enough revenue to cover expenses. WSSC faced a similar situation

although an unusually wet summer was a major factor contributing to decreased

revenues. Both incidents received wide-spread publicity as indications

of the consumer being penalized for practicing water conservation. Utilities

urgently need to respond to these concerns.

22
John Nelson, General Manager of the North Marin County Water District,

indicated one way in which this could be handled. I'/hen the drought struck.

North Marin added a drought surcharge onto existing water rates. This sur- charge was implemented with the understanding that it would be removed

on a specific date. Nelson feels that this system allowed the utility

to meet expenses, while at the same time maintaining public trust (personal

communication, October 1979).

Another possible means of dealing with this issue might be to emphasize

that although conservation may cause short-term rate increases, in the

long-term it should have a favorable effect on rates. Kudrna and Injerd

(1979) stress this point, "over the long term... the economic impact of

conservation will lower the unit cost of water because the capital costs

of new and/or expanded supiply and treatment facilities will be less"

(p. 11).

As this overview indicates, the issue of conservation and rate structure

is a complicated one requiring interaction and understanding between the

customer and the utility company.

7. SUMMARY AND CONCLUSIONS

In summary, how can individuals be encouraged to save water? The

incentives discussed in this report address two general motivations. The

first assumes that individuals are beginning to develop a "conservation

ethic" concerning the use of natural resources in general and water in

particular. The second suggests that consumers will conserve water in

order to save money.

Consumer education and information programs generally focus on encouraging

a conservation ethic. The 1960s witnessed the beginning of an awareness

of the need to protect and conserve non-renewable natural resources. The

recent drought in northern California heightened awareness of water as

a possible scarce resource. Many areas of the country, however, have not

directly experienced water shortages and individuals have not recognized

the impact of supply, storage, and treatment limitations. The consumer

programs discussed in this report encourage water conservation by providing

material on water conservation devices and tips on water conservation

practices

.

The feedback techniques and rate structures reviewed in this report rely

to a large extent on financial incentives to encourage conservation. Some

consumer materials also stress the financial advantages of water conservation. Increasingly, financial incentives are being related to the cost

of energy. Stressing the relationship between water conservation and

reduced water bills can, however, create problems. Water utilities are faced with certain fixed costs and an effective conservation effort can reduce revenues and possibly force a rate increase in the short run. This

issue is receiving increasing public attention and must be dealt with so that it does not become a disincentive for conservation.

23
Even a direct appeal to a conservation ethic or to the financial advantages

of water conservation has not always proven to be an effective incentive

for water conservation. As with energy conservation, utilities, government

agencies, and consumer groups face a difficult problem in motivating

individuals to conserve water when there is not an immediate crisis.

The literature review strongly indicates the need for further research.

Utility companies, government agencies, and consumer and environmental groups

are all developing and distributing consumer information and education materials on water conservation. The effects of these materials have not been

systematically studied. In fact, some of the energy conservation literature

has indicated that informational material may not be an effective means

of encouraging conservation (see Section 4). John Nelson, General Manager,

North Marin County Water District, feels that if the consumer receives

too much information (such as conservation material with each quarterly

bill), the information will tend to be treated as unimportant. Many of

the individuals interviewed at utility companies in California and at the

California Department of Water Resources stressed the need to tie water

conservation materials to energy conservation. These individuals felt that consumers are just now beginning to respond to energy conservation and

to emphasize water conservation as a totally separate area would only lead

to feelings of frustration and confusion. Before further major efforts are undertaken in consumer education some of these areas need to be considered.

Feedback has shown promise in the area of energy conservation, although a number of questions remain to be answered. Feedback may also prove to be

an effective means of encouraging water conservation, but research needs

to be undertaken which specifically addresses feedback as a water

conservation technique.

In both the area of consumer materials and feedback devices much of the

available information relates to energy conservation. There is an urgent

need to explore the relationship between energy and water conservation to

determine how much of the energy experience is relevant to water conservation and to delineate those areas where research specific to water

conseirvatlon needs to be conducted.

Studies have shown that the installation of individual water meters reduces

residential consumption. There, however, has not been research to determine

the possibilities of using the water meter as a feedback device. Research

is needed to explore which types of meters are most easily read and understood by consumers, and to consider possible locations for the meters to

enhance their accessibility.

Utility companies have recently begun to Implement new "conservation" rate

structures. The effects of these structures on consumer consumption should

be monitored over an extended period of time.

Encouraging energy conservation has not been an easy task and from all

Indications the water conservation area will be no different. It is

24
Important to build on available energy information, but at the same time

it is equally Important to pursue areas specifically related to water

consumption and the possibilities for conservation.

8. REFERENCES AND BIBLIOGRAPHY

This Section is subdivided. The first division lists general references

followed by a separate subdivision listing references for each Section of

the report.

8.0 GENERAL REFERENCES

Community Water Management for the Drought and Beyond; A Handbook for Local

Government , State of California: The Governor's Office of Emergency

Services, July 1977.

McGhee, R. , Reardon, M. , and Shulman, A. (eds.). Readings in Water

Conservation , Washington, D.C.: U.S. Environmental Protection Agency.

Milne, M. , Residential Water Conservation , Report No. 35, University of

California/Davis: California Water Resources Center, March 1976.

Nelson, J. 0., North Marin's Little Compendium of Water Saving Ideas , Novato,

California; North Marin County Water District, 1977.

Proceedings of an Urban Water Conservation Conference , Los Angeles,

California, January 16-17, 1976, State of California; Department of Water

Resources

.

Proceedings of the Conference on Water Conservation Needs and Implementing

Strategies, Franklin Pierce College, Rindge, New Hampshire, July 9-13,

1979.

Sharpe, W. E. and Fletcher, P. W. (eds.). Proceedings of Conference on Water

Conservation and Sewage Flow Reduction with Water-Saving Devices , University Park, Pennsylvania; Pennsylvania State University, July 1975.

The 1976-1977 California Drought; A Review, State of California: Department

of Water Resources, May 1978.

Water, Dgmestic Engineering , July 1979, entire issue.

Water Conservation in California , Bulletin 198, State of California;

Department of Water Resources, May 1976.

25
8.1 REFERENCES FOR SECTION 1.

Kudrna, F. L. and Injerd, D. , Water conservation in northeastern Illinois,

in Proceedings of the Conference on Water Conservation Needs and Implementing Strategies , Franklin Pierce College, Rindge, New Hampshire,

July 9-13, 1979.

Milne, M. , Residential Water Conservation , Report No. 35, University of

California/Davis: California Water Resources Center, March 1976.

Omang, J., Water shortages, pollution foreseen as big a world problem as energy. The Washington Post , February 20, 1980.

8.2 REFERENCES FOR SECTION 2.

Bishop, W. J., Field experiences in water saving programs of the Washington

Suburban Sanitary Commission, in W. E. Sharpe and P. W. Fletcher (eds.).

Proceedings of Conference on Water Conservation and Sewage Flow Reduction

with Water-Saving Devices , University Park, Pennsylvania: Pennsylvania

State University, July 1975.

Bruvold, W. H. , Consumer Response to Urban Drought in Central California , Berkeley, California: University of California, School of Public

Health, June 1978.

Cheetham, P., Changing attitudes, in Community Water Management for the

Drought and Beyond: A Handbook for Local Government , State of

California: The Governor's Office of Emergency Services, July 1977.

Diebert, E., Fiscal planning and water conservation in Madison, Wis.,

Journal of the American Water Works Association , January 1978, pp. 2-5.

Drought in Illinois: An Assessment with Recommendations , Springfield,

Illinois: Emergency Services and Disaster Agency, March 1977.

Farrell, D. M. , Wise water use means dealer profits. National Home

Center News , ^ (16), August 14, 1978.

Grear, M. J., Promotion program helps residents conserve water. The

American City , October 1974, p. 114.

Grear, M. J., Residential water conservation: The suburban Maryland

experience, in W. E. Sharpe and P. W. Fletcher (eds.). Proceedings of a Conference on Water Conservation and Sewage Flow Reduction with WaterSaving Devices , University Park, Pennsylvania: Pennsylvania State

University, July 1975.

Growth and water: Can we maintain the pressure?, Washington, D.C.:

League of Women Voters, 1977.

26
Hoffman, M. , Glickstein, R. and Llroff, S., Urban drought in the San

Francisco Bay area: A study of Institutional and social resiliency.

Journal of the American Water Works Association , 71 (7), July 1979,

pp. 356-363.

Kudrna, F. L. and Injerd, D. , Water conservation in northeastern Illinois,

in Proceedings of the Conference on Water Conservation Needs and Implementing Strategies , Franklin Pierce College, Rindge, New Hampshire,

July 9-13, 1979.

Lattie, J., Public education for water conservation, in Community Water

Management for the Drought and Beyond: A Handbook for Local Government , State of California: The Governor’s Office of Emergency Services,

July 1977.

Lattie, J. E. , Water conservation in the classroom, in Proceedings of an Urban Water Conservation Conference , Los Angeles, January 16-17, 1976,

State of California: Department of Water Resources.

McLeod, R. J., Water conservation — Good, Journal of the American Water

Works Association , 68 (6), June 1976, p. 17,

Meral, G. H. , Local drought induced conservation: California experiences,

in Proceedings of the Conference on Water Conservation Needs and Implementing Strategies , Franklin Pierce College, Rindge, New Hampshire,

July 9-13, 1979.

Meyer, L. J., Basin plan seeks water saving. Great Lakes Communicator , November-Dee ember 1978, 9

^ (2-3).

Milne, M. , Residential Water Conservation , Report No. 35, University of

California/Davis: California Water Resources Center, March 1976.

Nelson, J. 0., Northern California rationing lessons, in Proceedings of

the Conference on Water Conservation Needs and Implementing Strategies , Franklin Pierce College, Rindge, New Hampshire, July 9-13, 1979,

Page, P., Coping with a water shortage. Nation’s Cities , August 1977,

pp. 5-9.

A Pilot Water Conservation Program , Bulletin 191, Sacramento, California:

Department of Water Resources, 1978.

Saving water — How to market a good idea, Illinois Environmental Council

News, ^

(7), November 9, 1978,

A Selection of Water Conservation Program Aids , Sacramento, California:

Department of Water Resources.

Sharpe, W. E, , Why consider water conservation?. Journal of the American

Water Works Association , September 1978, pp. 475-479.

27
Sharpe, W. E. and Smith, D. , Conservation project shows substantial

reduction in home water use. Water and Sewage Works , June 1978,

pp. 94-96.

Stroeh, J. D. , Setting up an emergency conservation program; The Marin

experience, in Community Water Management for the Drought and Beyond ; A Handbook for Local Government , State of California; The Governor’s

Office of Emergency Services, July 1977.

Water Conservation in California , Bulletin 198, State of California;

Department of Water Resources, May 1976.

8.3 REFERENCES FOR SECTION 3.

Ammons, R. B. , Effects of knowledge of performance; A survey and tentative

theoretical formulation. Journal of General Psychology , 54 , 1956,

pp. 279-299.

Becker, L. J., Joint effect of feedback and goal setting on performance:

A field study of residential energy conservation. Journal of Applied

Psychology , 63 (4), 1978, pp. 428-433.

Barley, J. M., Seligman, C., and Becker, L. J., The lesson of Twin Rivers:

Feedback works. Psychology Today , April 1979, pp. 16-24.

Erez, M. , Feedback: A necessary condition for the goal setting-performance

relationship. Journal of Applied Psychology , 62 (5), 1977, pp. 624-627.

Hayes, S. C. and Cone, J. D. , Reducing residential electrical energy use:

Payments, information, and feedback. Journal of Applied Behavior Analysis , (3), 1977, pp. 425-435.

Kohlenberg, R. , Phillips, T. and Proctor, W., A behavioral analysis of

peaking in residential electrical-energy consumers. Journal of Applied

Behavior Analysis , _9 (1), 1976, pp. 13-18.

McClelland, L. and Canter, R. J. , Psychological Research on Energy

Conservation; Context, Approaches, Methods, Boulder, Colorado: University

of Colorado, November 1978.

McClelland, L. and Cook, S. W. , Energy Conservation Effects of Continuous

In-Home Feedback in All-Electric Homes , Boulder, Colorado: University

of Colorado, November 1978.

Ramey-Smith, A. and Gagnon, J. L. , An Investigation of Preferences for

Various Types of Energy Cost Feedback , NBSIR 79-1771, Washington, D.C.:

National Bureau of Standards, August 1979.

Seaver, W. B. and Patterson, A. H. , Decreasing fuel-oil consumption through

feedback and social commendation. Journal of Applied Behavior Analysis,

1 (9), 1976, pp. 147-152.

28
Seligman, C. and Darley, J. M. , Feedback as a means of decreasing

residential energy consumption, Journal of Applied Psychology , 62 (4),

1977, pp. 363-368.

Winett, R. A., et al.. Effects of monetary rebates, feedback, and information on residential electricity conservation. Journal of Applied

Psychology , 63 (1), 1978, pp. 73-80.

Winett, R. A. and Nietzel, M. T. , Behavioral ecology; Contingency

management of consumer energy use, American Journal of Community Psychology,

1975, 2, PP- 123-133.

8.4 REFERENCES FOR SECTION 4.

Heberlein, T. A., Energy information: The energy crisis and electricity

consumption in an apartment complex. Energy Systems and Policy, 1 (2),

1975, pp. 105-117.

McClelland, L. and Belsten, L. , Promoting Energy Conservation in University

Dormitories by Physical, Policy and Resident Behavior Changes , Boulder,

Colorado: University of Colorado, 1978.

McClelland, L. and Canter, S. J., The Resident Utility Billing System ; A Method of Reducing Energy Waste in Master-Metered Rental Housing , Boulder, Colorado: University of Colorado, 1979.

McClelland, L. and Cook, S. W. , Encouraging and Evaluating Reductions in

Electricity Use by Occupants of University Buildings , Boulder, Colorado:

University of Colorado.

McClelland, L. and Cook S. W. , Promoting Energy Conservation in

Master-Metered Apartments Through Group Financial Incentives , Boulder,

Colorado; University of Colorado.

Newsom, T. J. and Makranczy, U. J., Reducing electricity consumption of

residents living in mass-metered dormitory complexes. Journal of

Environmental Systems , 1_ (3), 1978, pp. 215-235.

Walker, J. M., Energy demand behavior in a master-metered apartment complex:

An experimental analysis. Journal of Applied Psychology , 64 (2), 1979,

pp. 190-196.

Winett, R. A., Prompting turning-out lights in unoccupied rooms. Journal

of Environmental Systems , 1_ (3), 1978, pp. 237-241.

8.5 REFERENCES FOR SECTION 5.

Gottlieb, D. and Matre, M. , Conception of energy shortages and energy

conserving behavior. Social Science Quarterly , Sept. 1976, pp. 421-429.

29
Hass, J. W. and Bag ley, G. S. , Coping with the energy crisis: Effects of

fear appeals upon attitudes toward energy consumption. Journal of Applied

Psychology , 60 (6), 1975, pp. 754-765.

Pallak, M. S. and Cummings, W., Commitment and voluntary energy conservation.

Personality and Social Psychology Bulletin , Winter 1976, pp. 27-30.

8.6 REFERENCES FOR SECTION 6.

Bogue, S. H. , Trends in water use. Journal of the American Water Works

Association , 55 , May 1963, pp. 548-554.

Banker, R. F. , Should water rates be raised?. The American City and

County , May 1979, pp. 63-66.

Does it pay to stay off master meters?. Professional Builder , November 1976, pp. 92-95.

Dunn, D. F. and Larson, T. E. , Relationship of domestic water use to

assessed valuation, with selected demographic and socioeconomic

variables. Journal of the American Water Works Association , 55 (4),

1963, pp. 441-450.

Griffith, F. P., An innovative approach to rate-making. Journal of the

American Water Works Association, February 1977, pp. 89-91.

Grima, A. P., Municipal water demand management. Water Spectrum , Summer 1979, pp. 27-35.

Hanke, S. H. , Some behavioral characteristics associated with residential

water price change. Water Resources Research , ^ (5), October 1970,

pp. 1383-1386.

Hanke, S. H. , Water rates: An assessment of current issues. Journal

of the American Water Works Association , May 1975, pp, 215-219,

Hanke, S. H. and Boland, J, J., Water requirements or water demands?.

Journal of the American Water Works Association . 63 (11), November 1971,

pp. 677-681.

Hanke, S. H. and Flack, J. E. , Effects of metering urban water.

Journal of the American Water Works Association, 60, December 1968,

pp. 1359-1366.

Headley, J, C., The relation of family income and use of water for

residential and commercial purposes in the San Francisco-Oakland

metropolitan area. Land Economics , 39 , November 1963, pp. 441-499,

Howe, C. W. and Llnaweaver, F. P., The impact of price on residential

water demand and its relation to system design and price structure.

Water Resources Research . _3 (1), 1967, pp. 13-32.

30
Kudrna, F. L. and Injerd, D, , Water conservation In northeastern Illinois,

in Proceedings of the Conference on Water Conservation Needs and Implementing Strategies , Franklin Pierce College, Rindge, New Hampshire,

July 9-13, 1979.

Larkin, D, G. , The economics of water conservation. Journal of the American

Water Works Association , 70 (9), Sept. 1978, pp. 470-474.

Nelson, J. 0. , North Marin’s Little Compendium of Water Saving Ideas , Novato, California; North Marin County Water District, 1977.

Page, P., Coping with a water shortage. Nation’s Cities , August 1977,

pp. 5-9.

Prlmeaux, W. J., Jr. and Hollman, K. W., Factors affecting residential

water consumption: The managerial point of view. Water and Sewage Works , April 1974, pp. R138-R141.

Rhoten, W. H. , Converting from master to individual electic meters: A case

study. Journal of Property Management , May/June 1978, pp. 119-121.

Rice, I. M. and Shaw, L. G. , Water conservation — A practical approach.

Journal of the American Water Works Association , 70 (9), September 1978,

pp. 480-482.

Smith W. , Water metering for increased revenue. Journal of the American

Water Works Association , 48 , October 1956, pp. 1227-1233.

WSSC, How to decrease the demand for water through changes to the rate

structure, in R. McGhee et al. (eds.). Readings in Water Conservation , Washington, D.C.: U.S. Environmental Protection Agency, pp. 243-270.

31
NBS-114A (REV. 9-78)

U.S. DEPT. OF COMM.

BIBLIOGRAPHIC DATA

SHEET

1. PUBLICATION OR REPORT NO. NBSIR 80-2119

2. Gov't Accession No. Z. feidfjtent's Accessioi^ No*

4. TITLE AND SUBTITLE

State-of-the-Art Summary of Incentives for Residential

Water Conservation

5. Publication Date October 1980

$* PerfonRiftg Organization Code

7. AUTHOR(S)

Jacqueline Elder

8. Performing Organ. Report No.

9. PERFORMING ORGANIZATION NAME AND ADDRESS

NATIONAL BUREAU OF STANDARDS

DEPARTMENT OF COMMERCE

WASHINGTON, DC 20234

10. Pfoject/Task/Work Unit No.

11. Contract/Grant No.

12. SPONSORING ORGANIZATION NAME AND COMPLETE ADDRESS rsrreer. City. Sts,te, ziP)

Office of Policy Development and Research

Department of Housing and Urban Development

Washington, D.C. 20410

13. Type of Report & Period Covered Final

n:

15. SUPPLEMENTARY NOTES

1

: Document describes a computer program; SF-185, FIPS Softvoare Summary, is attached.

16. ABSTRACT (A 200~word or less (actual summary o( most sighidcant information. If document includes a signi ficant bibliography or

literature survey, mention it here.)

Water conservation programs are being discussed and implemented throughout the

country. It appears, however, that unless there is a water crisis, these programs

have little effect on domestic consumption. Why have water conservation programs

been ineffective? What incentives exist for the individual homeowner to conserve

water? This report addresses some programs and techniques that have been developed

to encourage residential water conservation. Energy conservation techniques that

appear to be directly relevant to water conservation have also been included.

Specific areas covered are: consumer education and information programs, feedback

techniques, possible incentives in mass-metered residences, and the impact of

pricing on water consumption. An extensive bibliography is included.

17. KEY WORDS (six to twelve entries; alphaheticel order; capitalize only the first letter of the first key word unless a proper name;

separated by semicolons)

Consumer education; energy conservation; feedback; incentives; metering;

rate structures; water conservation.

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J Order From Sup. of Doc., U.S. Government Printing Office, Washington, DC

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(THIS REPORT)

UNCLASSIFIED

20. SECURITY CLASS

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22. Price

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