Water demand management in the industrial sector in the city of Thessaloniki, Greece

Reliable water supply and the protection of aquatic resources through effective water supply practices are essential to support all aspects of human life. The use of water through countries, cities and regions vary because of different climates, cultures, habits, economies and natural conditions, but the way to satisfy increasing demand does not differ a lot. In the past, efforts to satisfy increasing demand have often been based principally on increasing the supply of resources, which were available abundantly and at a relatively low cost. The relationship between water abstraction and water availability has turned into a major stress factor in the exploitation of water resources. The old trend of designing the cheapest reliable supply with little or no attention to demand determinants, pricing structures ad financing policies is no longer suitable. Nowadays, there is a wide recognition that there is a need for strategies for the sustainable use of water resources. Sustainable development ensures an appropriate exploitation of water resources, which minimizes the adverse environmental impacts. Water Supply Authorities should adopt and follow a demand-oriented water use policy. Undoubtedly, every sector should be examined separately, as it has its own features. There have been numerous studies examining the demand and value of water for domestic or residential use. However, the extension of this research to industrial and agricultural sector has been very limited. This is due to the lack of reliable information on water consumption and pricing. This thesis deals with water demand management strategies in the industrial sector in the city of Thessaloniki. The aim of the thesis is to: analyze the parameters that affect industrial water demand estimate elasticities of water demand forecast water demand by applying alternative water demand management policies To meet these objectives, the following methodology was developed and applied: 1. Collection of information and data through questionnaire in industries. Water saving options, water quality aspects, water demand and water availability issues, water related problems, as well as the adoption of modern technologies like water recycling, water reuse and dual water supply systems, are the main aspects examined. Public information concerning water and environmental issues, public reactions in price changes and public willingness to pay in the industrial sector are also investigated 2. Use of database technologies for data processing (use of s-pro, spss and Stata programs) 3. Investigation of variables that affect water use in the industrial sector and the influence of each one in water consumption 4. Classification and separate study of industries to those which have water as a basic input in the production process (56%) and to those that don’t confront water as a basic ingredient (44%) 5. Estimation of water demand elasticities for the following categories: a. the whole industrial sector b. high consumptive industries c. food and beverages industries d. industries that don’t have water as a basic input in the production process 6. Evaluation of alternative water demand management policies based on forecasting water demand in each of the above categories The main and most important conclusions are: The low impact of water price in industrial water consumption in the city of Thessaloniki. Price elasticity ranges from -0,243 to -0,028 There is an influence of water consumption levels as a result of the change of the structure of water pricing Low willingness to pay in the industrial sector Non-consumptive industries should be charged differently The number of workers is a statistical significant factor and has positive effect in water consumption Industrial water consumers do not accurately evaluate the level of their own consumption The kind of production influence water consumption. The highest consumptive industries are food and beverages industries and chemical and petroleum industries Only few industries use recycling methods After detailed investigation, a dual supply system is suggested to be implemented Most industries discharge their wastewaters without processing This study implies that the uniform rate structure is not an appropriate pricing tool for water conservation in the industrial sector. The restructure of this scheme, which occurred three years ago, affected water consumption in the industrial sector. A stricter pricing policy, with higher rates or even more blocks with shorter ranges, should be considered in order to serve as an incentive in the direction of water conservation. Industries, which don’t have water as a basic input in the production process should be charged as residential consumers. In high consumptive industries, economic incentives for the adoption of water recycling and reuse should be given. As far as other policies in water demand management is concerned, it turns out that education and information programs should also be considered and implemented