1 / 6

Untangling the price, cost and value of water

Untangling the price, cost and value of water. David Zetland. Aguanomics. The law of demand (shifts and slides!). There’s no diamond-water paradox. I know price. Do you know value?. Market vs. non-market values. Fixed prices affect quantity demanded, and

lori
Télécharger la présentation

Untangling the price, cost and value of water

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Untangling the price, cost and value of water David Zetland Aguanomics

  2. The law of demand(shifts and slides!)

  3. There’s no diamond-water paradox

  4. I know price. Do you know value?

  5. Market vs. non-market values • Fixed prices affect quantity demanded, and • Markets use prices to reconcile demands, but • Non-market values cannot be priced, so • Environmental water should be set aside, and • Economic water should be priced!

  6. Prices, costs and value • Prices can be above or below cost (by fiat) • Costs include OpEx, CapEx and resource rents • Values cannot be known but can be reconciled • Low prices take resources from tomorrow or deplete the environment today • Advice: Uniform tariffs for all customers and income supports for special cases

More Related