December 20 2007 by The Systemic Analyst.

The Charlotte Observer in North Carolina has published an article by Dr. Michael Walden which calls for the increase of water prices to effectively limit water usage. Although higher prices are likely to impede water waste, it is also likely that the already disenfranchised will become even more so as a result. Thus begins the great divide, those who have lot’s and water too, and those who have even less:

“North Carolina is suffering its worst drought in 100 years. Many municipalities are counting the days until reservoirs are empty, and rural water users worry their wells will run dry.Governments have responded in two ways. They have called on households and businesses to voluntarily conserve water. And they have imposed restrictions on the use of water.

However, water restrictions require rules about who can use water, when they can use it, and what they can use it for. Inevitably, questions arise about the fairness and implications of such rules. As restrictions are tightened, questions become more intense. To be effective, governments must spend resources to police the rules.

Economists argue there is another approach. Simply put, the easiest way to motivate people to do something is to give them a financial motivation to do it on their own.

Therefore, economists say, if we want people to use water more frugally, the quickest and more direct way to do so is to increase the price of water. The core economic principle of demand says the higher the price of a product, the less people will use. Studies show that every 10 percent increase in the price of water decreases water use by about 3 percent.” Click here for more.

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December 20 2007 by The Systemic Analyst.

Here is a great piece on water security from a blog called “Rolling Back The Tide of Extremism, One Post at a Time”:

“Looking for a good investment? Have a look at the leading companies in the rapidly expanding, global water supply industry. There are a lot of places in the world where people lack access to clean, fresh water and that’s a growing market at least for the century to come. What’s more, people who need fresh water will pay what it takes to get it. Life itself doesn’t really work too well without it.

Water as a commodity. It’s something a lot of Canadians have fretted over for years, the idea of somebody selling our stock of freshwater to foreign bidders. Keep your eye on that.

An interesting development in the US southwest where water is becoming increasingly scarce. It arises out of the apportionment of water between agriculture and domestic use. About three-quarters of their fresh water supply is earmarked for agriculture. People gotta eat - or do they? Some clever farmers in the region are reportedly now getting into the business of selling water they might otherwise be putting on their fields. They’re not selling their quota, just the water. That means they’re taking a common resource, privatizing it and putting it onto the commercial market. The best thing is they never pay dime one for the water itself. They get it so they can grow crops. The new way, however, cuts out all the bother of planting and irrigating and harvesting. You simply sell what you never produced in the first place. Neat trick, eh” Click here for more.

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