Should we Increasing the Price of Water to Promote Less Water Use? | The IES Blog

The price of potable water is a contentious issue. From a purely economic point of view using the supply and demand principles, water scarcity should herald higher water prices in order for the cost to reflect the water shortage. When people have to pay a premium price for a product, they tend to value it more, and use it more sparingly. While water usage would undoubtedly go down were prices to increase, there would also be a clear distinction between the poorer households, who would be unable to afford w

Source: Should we Increasing the Price of Water to Promote Less Water Use? | The IES Blog