WATER CONSERVATION: THE ROLE OF PRICE AND REGULATION IN
RESIDENTIAL WATER CONSUMPTION
Crecentia.P. Gandidzanwa (Mrs)
Department of Geography, Bindura University of Science Education Private Bag 1020
Bindura
Harare, Zimbabwe
Tel: (263) 7531-6 Fax: (263) 7534 Mobile: (263) 091 366 538
pamigandi@yahoo.com
Abstract
Title Sub theme: Hydrology. Submitted for poster presentation.
Water is a natural resource that can be replenished and at the same time be depleted. That
is; it is not a pure renewable resource. It is needed for ecological processes that sustain
human needs and activities. Over most of Zimbabwe the mean averages of rainfall is
between 600mm and 900mm. Assessments and forecasts of water demand in Zimbabwe
show that demand already exceeds the capacity of available water resources. Therefore,
careful consideration and control of water demand is an important component of integrated
water resources management in the country. Water demand management includes planning
and controlling water uses using social, economic and technical measures in an attempt to
reach equilibrium between limited water resources and demand. This article compares the
roles of markets and regulation in promoting residential water conservation. There has
been a long debate in environmental economics over the role of prices versus the role of
regulatory controls in reducing consumption and pollution. Environmentalists regard
prices as ineffective and inappropriate to control the use of environmental resources. They
generally favour direct regulatory controls on environmental resource use. However, it
should be noted that in recent years some environmentalists have begun to support a
greater role for pricing in environmental allocation issues. Economists regard prices as the
most appropriate means of controlling environmental resources. An example is the
Zimbabwe National Water Authority that provide important economic incentives for water
conservation. Tariffs are structured to discourage high water use by charging higher prices
at higher quantities of water use. In summary, economists stress the efficiency of pricing
and environmentalists emphasise the effectiveness of regulations. Equity issues receive
little attention from either. It is important to recognise that in practice water pricing is
typically implemented as part of a wider water conservation package. This paper examines
evidence on the role of pricing and regulation in encouraging conservation in residential
water consumption in Zimbabwe. The paper uses the criteria of effectiveness, efficiency,
and equity to compare pricing and regulatory approaches to water conservation. The paper
concludes that both approaches are important and that a pragmatic mix of policies is most
likely to encourage residential water conservation.