With birds in the air, trees ablossom, and summer just around the corner, the thoughts of environmental economists naturally turn to water pricing.Â Among the best of them is ANU’s Quentin Grafton, who will be presenting an ANUÂ seminar on this very topicÂ next week.
Sydney Water: Pricing for Sustainability
The presentation examines how scarcity pricing can be used to assist with urban water demand management in Sydney in low rainfall periods. Based an estimated daily water demand function it has been found that current water supplies are inadequate at existing prices to cope with another rainfall period similar or worse to what occurred over the period 2001-2005. The policy implication is to ensure adequate supplies and to meet future demands, Sydney water prices must be substantially raised at pre-defined supply trigger points in response to low rainfall periods.
Tuesday, 24 October
Seminar RoomÂ 4
Light refreshments available
Tel 02 6125 0168
With much less rigor than Quentin, I made a similar argument last year. Scrap water restrictions, raise the water price, compensate poor households, and let the market do its magic.