Heterogeneity in Domestic Water Demand: An Application of Multilevel Analysis to the City of Valencia (Spain)

This paper deals with the question of unobservable heterogeneity and problems of scale in urban water demand. For this purpose, the determinants of domestic water consumption and the elasticities were estimated using a hierarchical model. For our empirical analysis, a household level data panel from Valencia (Spain) between 2009 and 2011 was available. Households were assigned to the city neighbourhoods to which they belong, which allowed us to incorporate the intra-urban scale into the analysis. In the estimate, the average price paid by each household in each bimonthly period was used due to the current tariff structure in Valencia. Regarding our results, there were differences in the consumption between the different neighbourhoods that were not independent of the average price paid by households. We found that 27% of the variability in consumption was explained by differences in household behaviour. In addition, an average price-elasticity in Valencia for all periods of −1.868 was obtained as well as a range of elasticities for the different neighbourhoods between (−1.53 and −1.21). From the results obtained, it is possible to extract relevant information for local water managers in order to apply economic instruments, prices and taxes to urban water demand.

Techno-Economic Modelling of Micro-Hydropower Mini-Grids in Nepal to Improve Financial Sustainability and Enable Electric Cooking

In rural Nepal, micro-hydropower plant mini-grids provide renewable electricity to thousands of communities but the plants often have poor financial sustainability. Widespread uptake of electric cooking in such communities is currently not feasible due to high peak loads and limited capacity. In this paper, we develop a Remote-Areas Multi-Energy Systems Load Profiles (RAMP)-based stochastic techno-economic model for evaluating the economic viability of off-grid communities and improving their financial sustainability by introducing new appliances, productive end uses, and demand-side management measures. The model can be used to understand community electricity demand, assess economic status, determine equitable and profitable tariff structures, and plan new connections including electric cooking promotion or new industrial machines. Detailed electric cooking load modelling functionality was developed to represent Nepali cooking practices, scalable to approximate widespread uptake of electric cooking, and adaptable to other cookers and contexts. The model showed that a payment structure based on electricity consumption rather than a flat tariff could increase the income of a case study community in Eastern Nepal by 400%, although increased monthly payments for certain households from NPR 110 (USD 0.93) to NPR 500–1100 (USD 4.22–9.29) could present difficulty. However, households could reduce their electricity consumption and a more equitable tariff structure could be chosen while preserving plant profitability. The number of industrial machines such as mills could be doubled and up to 40 households provided with electric cookers if demand-side management measures were introduced.

Barriers to Overcome in Accelerating Renewable Energy Penetration in Bangladesh

In the context of the global need for the accelerated penetration of renewable sources in the energy mix, it is important to understand how fast-growing countries such as Bangladesh can participate in the global process by sequencing or combining actions to overcome multiple national-level barriers. This study analyzed how national-level barriers interact with one another with a view to better understanding in what order they can be approached in order to overcome them. Interpretive structural modeling was applied for the identification of the interactions among the barriers. The barriers identified from a context-relevant literature survey were cross-validated through in-country expert consultation. Policy makers and the research community were consulted using unstructured as well as structured questionnaire survey methods. The cross-impact matrix multiplication applied to the classification method was used to validate the interactions identified. The results indicated that it is possible to follow a systematic approach to overcome the barriers. The findings show that the highest priority is the need to revisit the current top-down process in policy and governance in the energy sector in Bangladesh. By making room for new institutional arrangements and the strategic role of local experts, stakeholders such as manufacturers, businesses, and users can create a sociopolitical environment that makes it possible to break the current inter-linked chain of barriers. Revisiting the current fuel-specific design and allocation of subsidies and the tariff structure is necessary. Simultaneous supplementary efforts towards human capacity building, the creation of a database for both the demand and supply sides of renewable energy, and improvement in coordination across institutions could be helpful. There is a need for the development of a technology-specific research and development infrastructure to encourage local innovation and business model development. Attention needs to be paid to raising scientifically informed public awareness for the uptake of renewable energy in Bangladesh.

The Role of Regulators in Promoting the Procurement of Flexibility Services within the Electricity Distribution System: A Survey of Seven Leading Countries

This paper identifies and explores regulatory issues that may have an impact on the use of flexibility services by distribution utilities to solve grid constraints. This can be done by flexible distributed energy resources which can be instructed, for instance, to reduce export generating capacity or increasing consumption. We want to identify how regulation can better support the development of the future distribution utility in its role as neutral market facilitator, enabling more competition in local flexibility markets and optimal use of resources. A set of questionnaires were designed to capture the insights around important aspects of the regulation of flexibility markets (utilities’ network incentives, network tariff structure, market design for flexibility markets, etc.). These were sent to distribution utilities, energy regulators, energy marketplaces, energy associations and relevant experts from seven jurisdictions. The responses suggest a collective interest in the procurement of flexibility services by distribution utilities from distributed energy resources. New regulations, the adaptation of current rules and recent consultations reflect this. However, the amount of progress with and preferences for key regulatory changes differ across jurisdictions.

Do Households Respond to the Marginal or Average Price of Piped Water Services?

Water utilities commonly use complex, nonlinear tariff structures to balance multiple tariff objectives. When these tariffs change, how will customers respond? Do customers respond to the marginal volumetric prices embedded in each block, or do they respond to an average price? Because empirical demand estimation relies heavily on the answer to this question, it has been discussed in the water, electricity, and tax literatures for over 50 years. To optimize water consumption in an economically rational way, consumers must have knowledge of the tariff structure and their consumption. The former is challenging because of nonlinear tariffs and inadequate tariff information provided on bills; the latter is challenging because consumption is observed only once and with a lag (at the end of the period of consumption). A large number of empirical studies show that, when asked, consumers have poor knowledge about tariff structures, marginal prices, and (often) their water consumption. Several studies since 2010 have used methods with cleaner causal identification, namely regression discontinuity approaches that exploit natural experiments across changes in kinks in the tariff structure, changes in utility service area borders, changes in billing periods, or a combination. Three studies found clear evidence that consumers respond to average volumetric price. Two studies found evidence that consumers react to marginal prices, although in both studies the change in price may have been especially salient. One study did not explicitly rule out an average price response. Only one study examined responsiveness to average total price, which includes the fixed, nonvolumetric component of the bill. There are five messages for water professionals. First, inattention to complex tariff schedules and marginal prices should not be confused with inattention to all prices: customers do react to changes in prices, and prices should remain an important tool for managing scarcity and increasing economic efficiency. Second, there is substantial evidence that most customers do not understand complex tariffs and likely do not respond to changes in marginal price. Third, most studies have failed to clearly distinguish between average total price and average volumetric price, highlighting the importance of fixed charges in consumer perception. Fourth, evidence as of late 2020 pointed toward consumers’ responding to average volumetric price, but it may be that this simply better approximates average total price than marginal or expected marginal prices; no studies have explicitly tested this. Finally, although information treatments can likely increase customers’ understanding of complex tariffs (and hence marginal price), it is likely a better use of resources to simplify tariffs and pair increased volumetric charges with enhanced customer assistance programs to help poor customers, rather than relying on increasing block tariffs.

The Financing of Wastewater Treatment and the Balance of Payments for Water Services: Evidence from Municipalities in the Region of Valencia

Pollution from wastewater discharges requires the treatment of all wastewater to maintain water bodies in good condition, as well as the possibility of reusing this water. Thus, wastewater treatment is an activity that has developed significantly in the Region of Valencia and has significant costs, including energy, which represents the main economic cost and an important environmental cost. In this way, efficiency and adequate financing of this activity are essential to minimise our environmental impact. However, the main funding tool currently does not allow us to address this issue, so we have a wastewater treatment with a high environmental cost in the form of greenhouse gas emissions. This tool is part of the revenues of water services, so it is not entirely independent, but it also seeks to prevent households from paying too high a total price. This leads to a situation where changes are needed to improve the financing of the different water services, as the financial resources obtained are insufficient and do not allow the current environmental problems to be solved. The analysis shows the importance of an appropriate tariff structure, as well as the need to include aspects such as water pollution and energy costs in the wastewater treatment tariff.

Integration index for mobility as a service

The integration in transport informatics is facilitated by the rapid development of Information and Communication Technology. One of the realizations of the integration is Mobility as a Service (MaaS), which is proposed as a data-driven, user-centric, personalized mobility service. It integrates various forms of mobility services covering the entire travel chain. Qualitative methods have been applied in existing studies to analyse the integration of MaaS. However, a comprehensive quantitative method is still missing, which could be introduced as a supplementary tool to compare MaaS services. Therefore, we have developed a weighted elaboration method to calculate the complex integration index for MaaS systems. Three aspects are determined as variables, which are the functions of the MaaS application, involved transport modes as well as the tariff structure. Moreover, the organization as the backbone of such integration is considered as the fourth aspect. The integration phases of MaaS are introduced regarding these four aspects, then the calculation method of the complex index is developed by considering the weighted variables. Fourteen MaaS services are evaluated with the method and categorized by organization aspect. We found that public authority is proposed to be the inter-city MaaS operator, and the private company is proposed to be the MaaS operator in intra-city or national level. Our method may support decision-makers to have an abstract overview of MaaS and identify the possible development stage.

Tariff structuring in water and sanitation: public profiting arrangements on universalization initiatives

Water and sanitation service access is a global problem, impacting disproportionally poor communities of low-income countries. Failed universalization initiatives highlighted historical negligence, social inequality, and bad governance. Infrastructure developments require large investments, which most local governments cannot afford. Alternative funding might come from private investors through cost-effective project finance arrangements. Public services should be sustainable, conciliating users' willingness to pay with providers' willingness to supply. Governments have implemented profit-driven strategies over taxing outsourced public services to increase budget inflow. Inefficient tax schemes on essential public services have damaged universalization initiatives in developing countries. These negative taxing practices have damaged tariff structure, service sustainability, and project attractiveness. Public sector should not profit from unsustainable outsourced services that they are required but cannot supply. Water and sanitation expansions on low-income communities in developing countries should not take place as tariff-free schemes, but within a tax-exempt policy.

Analysis of India’s Competitive Position in RCEP

In the context of policy developments surrounding India’s opting out of Regional Comprehensive Economic Partnership (RCEP) and India’s lack of ventures in plurilateral regional trade agreements (RTAs), we attempt to analyse the competitiveness and potential of Indian export items in the RCEP region. Our findings show low export intensity for India with RCEP member countries. Higher revealed comparative advantage (RCA) and duty reduction in partner countries may help India in enhancing exports of only a few commodities. India has high RCA in commodities, for which the tariffs by RCEP countries are already moderate. Considering India’s present trade balance position, tariff structure, non-tariff barriers (NTBs) of partner countries, intellectual property rights (IPR) and export competitiveness of Indian commodities, it appears to us that India had limited options but to opt out of RCEP. While the members of RCEP are still open to accepting India, more needs to be worked out on building competitiveness for Indian commodities and the future strategy for negotiations, if India considers itself to be a part of RCEP in the future. Given its limited participation in regional blocks, India should identify its core areas of interest in goods and services where it can enhance its competitiveness and attain better trade performance using strategic bilateral negotiations and possibly exploit imported inputs to promote higher value-added exports.