Impacts on Water Consumption and Welfare Effects from Appliances Selection & Pricing Policies Under an Increasing Block Pricing Structure in the Residential Sector, The Cases of San Jose and Addis Ababa

The aim of this project is to contribute to the design of water demand management strategies related to water price and technology adoption for residential water consumption in urban areas with rapid population growth. This study empirically evaluates how water prices impact on households’ choices of water use appliances, and in turn, how households with different technology portfolios respond to water prices and water consumption. While examining price–technology impacts on water consumption we will also analyze the welfare effects of price and technology changes. These topics will be evaluated in two cities that are under an increasing block price structure, which is the most common tariff structure in developing countries.