Read the following passage and answer the question that follows. Your answer should be based on the passage only.

Many cities have pledged to eliminate water shortages within the next two decades, which would require domestic water waste to fall close to zero. A hydrologist reckons that, at best, only a third of this saving might be achieved through demand-side measures, such as households fixing leaking taps and taking shorter showers. And even that would require utilities and municipal bodies to offer stronger incentives, through pricing and rebates, to make water-efficient fixtures cheaper and more widely available.

With reference to the above passage, the following assumptions have been made:

1. Incentives built into pricing and rebates can result in water-saving behaviour in households.

2. Households are not capable of adopting water-saving behaviour without the involvement of utilities and municipal bodies.

Which of the above assumptions is/are valid?