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 , alexmen@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
Water uses
39,79
74,34
Gardening
8,79
Car washing
Terrace washing
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
Reliability level of drinking water
13,62
41,07
12,76
30,55
Tap water
Tap+cleaning devices
Bottled water
Tap+bottled water
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
Water problems
19,71
40,46
5,62
34,75
No water problem
Water quantity problem
water quality problem
Quality+quantity
Figure 3 : Water problems
Water problem in the future
24,1
75,9
Yes
No
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
Water habits
12,26
17,69
70,05
Big spenders
Small spenders
Normal
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
Water quality
Tap water
88,62%
Bottled water
11,38%
Tap water NOT o.k.
57,17%
Tap water o.k..
42,83%
Water problems
Yes- future water
46,92%
problem
No- future water
53,09%
problem
Water rate
Cheap
9,43%
Normal
69,81%
Expensive
20,76%
Consumption control-water rate
Yes
30,68%
No
69,32%
Cost of water projects
Cost paid on local level
23,14%
Cost paid on national
76,86%
level
Table 1: Comparison survey results 1995-2000
2000
87,24%
12,76%
63,82%
36,18%
75,9%
24,1%
16,95%
68,13%
14,92%
20,08%
79,92%
48,23%
51,77%
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.
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