York Region:
Conservation-Oriented Water
Pricing Analysis

 

 

The Challenge:
Investigate how conservation-oriented water pricing could affect future water consumption across the Regional Municipality of York, Ontario and what it might mean for residents.

 

The Project:

When York Region was completing its Long-Term Water Conservation Strategy, they came to us for advice on how changes to water prices over the next 40 years could affect demand.

Working with our partners Dr. Steven Renzetti of Brock University and the POLIS Water Sustainability Project, we started by looking at current pricing in the region and the potential benefits of a conservation-oriented approach.

We constructed a model to forecast future scenarios using different assumptions about price change. Unlike other forecasting tools, which typically rely on assumptions about per capita water use, our model is based on the economic concept of demand elasticity. Inputs included water and energy prices, population growth, climate, income, and level of economic activity.

We also provided advice on a number of implementation issues including different rate structures, affordability and revenue stability. The report was illustrated with “best in class” case studies from places like Los Angeles, Seattle, Melbourne and London.

 

The Result:
Our report provided an important input into York Regions Long-Term Water Conservation Strategy . The forecasting methodology we came up with is the first of its kind, providing an innovative and streamlined new way to forecast a community’s future water use.

For more information on York Region’s Long Term Water Conservation Strategy, see http://www.openwater.ca/.