Can individual bills reduce water waste?

Water is becoming an increasingly scarce resource around the world, and the issue of water management is becoming an even more urgent issue in Sweden. Nevertheless, water prices are plentiful in ways that can lead to overdoses, especially in apartment buildings where rent includes water costs. Without a direct financial incentive to conserve water, consumption will be higher than necessary.

“Our research examines how individual water surveys and billing affect the use of hot water in apartment buildings. Appropriate economic incentives can have a significant impact on household consumption and thus contribute to sustainable water use.”

Researchers analyzed data from hundreds of apartments in Kumla, Sweden between 2012 and 2016. Before individual metering was introduced, all households shared a common water bill. This means that individual savings did not provide direct financial benefits. However, when tenants begin paying for actual consumption, hot water usage will decrease by about 18%, indicating that price incentives can have a significant impact on consumption.

“An interesting aspect is that while hot water consumption has decreased, the distribution of costs has also become more fair. Previously, hot water costs were included as a fixed portion of rent, so few people who used as few people as those who used large amounts of hot water were paid.” The findings are listed in the Journal of the Association of Environmental and Resource Economists.

Immediate and long-term effects

The effect was immediate and long-term, regardless of the size of the home, day of the week, or within the home, whether in the bathroom or kitchen, or where water was used. Compared to previous studies on water conservation, results show that price-based incentives, for example, have a greater effect than information campaigns, often leading to small savings.

“Because hot water is produced using both cold water and energy, our findings highlight that individual meters and billing can be cost-effective strategies to reduce both water consumption and energy. This study contributes to the ongoing debate to promote sustainable water management and resource efficiency using economic policy instruments.