Social and Economic Aspects of Urban Water Management

SOCIAL AND ECONOMIC ASPECTS OF URBAN WATER MANAGEMENT.

THE CITY OF THESSALONIKI CASE

E. G. Kolokytha , Y. A. Mylopoulos, A .K. Mentes

Aristotle University of Thessaloniki

Department of Civil Engineering

Div. of Hydraulics and Environmental Engineering

540 06 Thessaloniki Greece

E-mail: lpcol @ civil.auth.gr , mylop @ civil.auth.gr ,

ABSTRACT

This paper deals with the integration of social and economic aspects of sustainable water supply policy, with reference to the city of Thessaloniki . In order to implement a more sustainable water supply policy the Water Supply Authority of the city of Thessaloniki in cooperation with Aristotle University of Thessaloniki has conducted a research to investigate social and economic aspects of the water supply policy. The level of awareness of the public, quantitative water supply issues, water quality issues, water pricing policy, project planning policy, the level of public information concerning environmental and water issues, are among the most important aspects examined and analyzed through a questionnaire conducted in 2150 citizens of the city of Thessaloniki. Useful remarks and conclusions are derived, concerning the way the Water Supply Authority of the city of Thessaloniki should reorient the current water supply policy towards sustainability, in an effort to improve the effectiveness and efficiency of urban water management and planning.

KEYWORDS:: water pricing, public awareness, urban water management, sustainable water supply policy, city of Thessaloniki

INTRODUCTION

Today it is clear that water has not been managed in a sustainable way, and the complex interrelationships among environmental, economic, social and political issues have not been taken into consideration. Rapid population growth, strong industrialization, expansion of agricultural uses, growing demands of water and at the same time depletion of freshwater resources are some of the facts observed that create an intensive need to develop alternative schemes for managing scarce water resources in an integrated manner.

The challenge today is to integrate demand management into long- range water supply planning in order to achieve an appropriate balance between capacity expansion and water conservation(Winpenny 1994, G. Westerhoff, T. Lane, 1996). In order to do so, major changes should be planned in urban water management. Among the main key issues that can guarantee the success of the application of demand management, apart from the consideration of water as an economic resource, is the involvement of the citizens in the decision making process in order to implement a “new” demand-oriented urban water policy.

The water users, as well as the general public who may be affected by integrated water management decisions, should be a part of the decision-making process. The public should be included in analyzing alternatives, evaluating relative risk reduction, and the economic effects of alternatives. Solutions must be applied concerning priorities set through public choices. The public must have a voice in decisions of significant impact, such as water conservation. Demand management appears as the ideal solution to water shortages especially during drought periods balancing competing needs for the resource, but also growth and economic development. These decisions will need to be made on a regional or even multi -state basis. Social acceptability is important for a successful implementation of water conservation and demand-oriented urban water management policy. The better the suppliers understand their consumers the more effectively they will be able to communicate with them. (Haimes Y. & Baumann D.,1988) (Baumann D., Boland J., Hanemann M. 1998).

Taking into account all the above, this paper evaluates and compares the results of a research which investigates social and economic aspects of the water supply policy in the city of Thessaloniki.

DESCRIPTION OF THE RESEARCH

Population: Τhe citizens of the city of Thessaloniki greater area using the services of the water authority was estimated to be 1.000.000 (350.000 households).

Sample size : 2.171 questionnaires corresponding to equal number of households were collected. This sample is satisfactory for the reliability of the results compared to samples of other surveys (sample 1:161).

Distribution of the sample: For a better representation of the population The Thessaloniki area was were divided into 17 smaller areas.

Sampling methodology: The method of “random samples” was used. According to this method there is a certain possibility for every unit to be chosen as a unit of the sample.

Survey method: Personal interviews (field survey) of the citizens.

Data analysis: Data analysis was made with the method of “the construction of double entrance matrices of absolute and relative frequencies”. From the double entrance matrices we derive the qualitative relationships among all the variables under examination.

Questionnaire: The questionnaire covers questions that concern:

the social characteristics of the sample (sex, education, residence etc.),
quantitative water supply issues (meeting water needs, frequency of water supply interruptions etc.)
water quality issues (quality of potable water, etc.)
price policy
project planning policy
level of public information concerning water issues

RESULTS

Interesting results have been obtained concerning the citizens’ opinion and habits for all water matters that were asked. Below the most important ones are summarized:

Social characteristics

Concerning the social characteristics of the sample more personal interviews from women had been collected than from men. Concerning their age the sample was equally divided into 4 groups (18-25 years old, 26-44, 45-60 and >60 years old). This distinction permitted a detailed differentiation of behaviour and attitudes concerning all water matters.

The level of education with 35% of the citizen’s being university degree graduates ensure the capability of the people to understand and correctly answer the questionnaire.

Water consumption

Figure 1 : Water uses

The water supply network seems to have no major water pressure or operational problems. Only 38% of the citizens have a pressure vessel. According to the survey there is no need of a water deposit device in the houses since more than 70% of the citizens claimed no water interruptions at all.

The gardening and washing are among the more usual water uses. On fig.3 the percentage is more than 100% because the citizens had the opportunity to answer to more than one choices.

Water quality

Figure 2 : Reliability level of drinking water

Even though water quantity problems practically don’t exist, water quality problems are viable since only 36% of the citizens asked, are satisfied with the quality of drinking water. Water quality tests though, find no quality problems in the tap water. This means that insufficient or bad information lead people not to trust tap water.

Even though water quality is not satisfactory enough, the majority of the citizens (72%) drink tap water with or without the use of special cleaning devices. There is a 13% of people though that drink only bottled water .The bottled water industry has done an excellent job of placing its product as a safe alternative to tap water, even though it is well known that bottled water has been subject to much less stringent health regulations.

Water problems

Figure 3 : Water problems

Figure 4 : Water problems in the future

3 out of 4 citizens think that there will be serious water problems in the near future. These problems are specified both on water quantity and quality. Water quality problems are more emphasized than water resources availability problems.

Water habits

Figure 5 : Water habits

As it was expected, more people characterise themselves as normal water users concerning the quantities of water they consume. But there is a significant percentage of 12% that call themselves “big spenders”. It is worth mentioned that people don’t have the right sense concerning the water they consume. Most of the times they under or over estimate their consumption. This is confirmed from the comparison of real data of consumption from the Water Supply Authority and their answers to the research.

31,46% of people claimed that they cannot reduce their water consumption without changing their quality of life.

Water pricing policy

68.13% of the citizens think that water price is normal. There is a percentage of 14,92% who think that the price of water is expensive. 30,82% of people think that a more accurate water pricing will help in water conservation. More than half of the citizens asked don’t believe in the effectiveness of the measure of water pricing. The current price of water in the city of Thessaloniki (0.35 $/m3) doesn’t help its conservation since only 1 out of 5 persons control their consumption in connection with its price. A significant percentage of the people asked (44,08%) are not willing to pay extra for better service. The 49,75% of citizens are accepting a 10-20% raise of water price for the improvement of services, only 4,56% approve a 20-30% raise of water price and last 1,61% are WTP a 30-40% raise.

Project planning policy

3 out of 4 citizens believe that the solution to water problems is the construction of new engineering projects. Only 1 out of 4 people claim that reduction of water consumption through accurate water pricing and information may be the solution to water shortages.

Fortunately, more than half the people asked, think that the cost for water supply engineering projects that are oriented to help the water problem of the city should be delivered on a local and not on a national level.

Information policy

93,59% of the people asked claim that they don’t get adequate information concerning water supply issues of the city. Moreover 76,36% are willing to get informed directly by the Water Supply Authority through a special edition or 46,59% choose to be informed by the local media (radio, TV, newspapers ). 16,45% preferred to be informed by magazines. The percentage is more than 100% because the citizens had the opportunity to answer to more than one choices.

COMPARISON RESULTS. WHAT CHANGED SINCE 1995

The same kind of research had been conducted by Aristotle University of Thessaloniki in cooperation with the Water Supply Authority 5 years ago to 2100 citizens in the city of Thessaloniki (Mylopoulos Y. A., and. E. Kolokytha, 1997). In the table below some interesting comparisons are made between the two surveys.

1995

2000

Water quality

Tap water

88,62%

87,24%

Bottled water

11,38%

12,76%

Tap water NOT o.k.

57,17%

63,82%

Tap water o.k..

42,83%

36,18%

Water problems

Yes- future water problem

46,92%

75,9%

No- future water problem

53,09%

24,1%

Water rate

Cheap

9,43%

16,95%

Normal

69,81%

68,13%

Expensive

20,76%

14,92%

Consumption control-water rate

Yes

30,68%

20,08%

69,32%

79,92%

Cost of water projects

Cost paid on local level /

23,14%

48,23%

Cost paid on national level /

76,86%

51,77%

Table 1: Comparison survey results 1995-2000

CONCLUSIONS AND SUGGESTIONS

From the careful examination and analysis of the results of the survey, useful conclusions can be derived concerning the citizens’ opinion about all aspects that depict the existence or the implementation of a sustainable urban water supply policy in the city of Thessaloniki.

Concerning water consumption:

People claim that they don’t have serious water quantity or network operational problems.
There is a significant difference between the amount of water they think they consume and the one they really do (from the real data). Most of the times they underestimate their water consumption. The fact that 12% characterise themselves as “big spenders” proves that there is ground for water conservation trough the use of economic instruments (water pricing, incentives or disincentives, taxes, different water rates for high consumptions).

Concerning the water problems:

People think that there exist both water quality and availability problems. The water quality problem is more emphasized and this is stressed by the fact that people are not satisfied from the tap water. It should be mentioned though that more than 70% of the people drink tap water on a permanent basis.
The underestimation of the existence of water availability problems indicates that the Water Supply Authority should focus through better information on the important issue of water resources depletion and the need for water conservation.
People appear to be aware of environmental problems and especially water problems, and they are afraid that things will get worse in the future. The percentage of people who think that the city will face water problems in the future has been significantly increased the last 5 years as shown by the comparison of the 2 surveys. Therefore people could understand the need for changes towards a more efficient and effective urban water supply policy.

Concerning the price policy:

The tiered water rate structure in Thessaloniki according to the existed data, consists today of 5 increasing block rates and a fixed service charge of 1.1$ per month. (Mylopoulos & Mentes 2000). Most people approve the water rate structure applied so far .
People think that water should be treated as a social commodity and not as an economic good since they don’t wish changes in the already low price of water. The majority of the people either denies to pay more, or want to pay only 10-20% more for the improvement of water services.
Fortunately the last 5 years more people understand that the price of water is very low, especially compared to other public goods (telephone, electricity). But still this percentage is very small and this is also a reason why the majority of people don’t connect water consumption with its price .Perhaps, if the price of water was higher water consumption would have been lesser.

The current price of water does not help water conservation.

Concerning education and information levels:

People ask for information, so the Water Supply Authority needs to upgrade its effort to better inform the consumers and to set educational programs for citizens to participate

Concerning project planning:

Construction of new engineering water projects is what 3 out of 4 citizens believe to be the solution to water problems. This is the current supply-oriented policy applied throughout the country.
There is a change the last 5 years concerning the cost of these projects. Now more citizens believe that they should pay for these projects. 5 years ago they were claiming that the cost must be divided on a national level.

REFERENCES

Haimes Y. & Baumann D.,(1988) The role of social Behavioral Sciences in Water Resources Planning and Management, pp. 6-35, N.Y. ASCE.

WinpennyJ.(1994).ManagingWaterasanEconomicResource,NewYork, Routledge.

Maddaus W, Gleason G, . Darmody I, (1996) Integrating conservation into water supply planning. Journal AWWA, pp. 57-67.

Westerhoff G., & Lane T, (1996) Competitive ways to run water utilities.Journal AWWA, pp. 96-101.

Mylopoulos, Y. & Kolokytha, E. (1996). Economic incentive instruments in sustainable environmental management. The water resources case. Proc. International Conference: «Restoration and the protection of the environment III. Crete, Greece.

Mylopoulos Y. A., and. E. Kolokytha., (1997) Social and Economic Aspects of Sustainable Water Supply Policy. The City of Thessaloniki Case In: Refsgaard and Karalis, (Eds.), Operational Water Management, pp 41 – 45, Rotterdam, Balkema,.

Baumann D., Boland J., Hanemann M. (1998) Urban Water Demand Management and Planning : USA, McGraw Hill .

Kolokytha E. and Y. A. Mylopoulos (1998). Economic aspects of water supply policy in Greek cities In: K. Katsifarakis, G. Korfiatis, Y. Mylopoulos, and D. Demetracopoulos, (Eds.) Proceedings of International Conference: Protection & Restoration of the Environment IV, Aristotle University of Thessaloniki, pp.903-910, Halkidiki, Greece.

Kolokytha E. and Mylopoulos Y.(2000) Sustainable water resources management in the municipal sector in Greece. Proc. International Conference: «Protection Restoration of the environment V, Vol.I, pp.281-288, Thassos, Greece.

Y.A. Mylopoulos, A.K. Mentes (2000) Perspectives of a demand oriented water policy in the city of Thessaloniki. Proc. International Conference: «Protection Restoration of the environment V, Vol.I, pp.289-295, Thassos, Greece.