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2020 Projects

Review & Recommendations on the Economics of Demand Management

Diellza Muriqi ’22
Major: Economics

Diellza Muriqi ’22

Major: Economics

Research Collaborator: WestWater Research

Faculty Collaborator: Mark Smith, Economics & Business

To reduce water use from the Colorado River, a Drought Contingency Plan (DCP) has been created to dedicate 500,000 acre-feet of water in Lake Powell to store conserved water from the states of Colorado, Utah, New Mexico, and Wyoming which compose the headwaters or upper basin of the Colorado River system. This conservation will be achieved by designing a water demand management program that represents “voluntary, temporary, and compensated reductions in consumptive use of waters that otherwise would deplete the flow of the Upper Colorado River System”. Our research reviews the literature on municipal water efficiency and conservation programs and policies. We identify both the direct and indirect economic impacts of these strategies on communities and the environment, as well as mitigation approaches. Lastly, we identify data gaps that could influence the design of the demand management program. Our findings suggest that while certain demand management options can be very effective, especially those that include rebates or some sort of incentives, the impact of these actions on equity is poorly understood.

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