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Comments on: Water – is there a role for demand management at the household level? http://www.tvhe.co.nz/2008/02/14/water-is-there-a-role-for-demand-management-at-the-household-level/ The Visible Hand in Economics Thu, 27 Nov 2008 19:01:11 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Metering and the market for water « The visible hand in economics http://www.tvhe.co.nz/2008/02/14/water-is-there-a-role-for-demand-management-at-the-household-level/#comment-878 Thu, 27 Nov 2008 19:01:11 +0000 http://tvhe.wordpress.com/?p=243#comment-878 […] Comment! The DomPost contained an article on the potential for metering Wellington’s water supply. The question is asked: should Wellingtonians pay for their water? This issue is a hot topic, having been discussed at Kiwiblog, Infometrics and TVHE earlier this year. […]

]]> By: Tejvan Pettinger http://www.tvhe.co.nz/2008/02/14/water-is-there-a-role-for-demand-management-at-the-household-level/#comment-877 Thu, 14 Feb 2008 12:10:49 +0000 http://tvhe.wordpress.com/?p=243#comment-877 The marginal cost of supply extra water is high. But the price is still zero to consumers. Therefore it creates a classic example of allocative inefficiency. Assuming the costs of installing water meters is relatively low, it would be more efficient to charge per unit of water. (and I’m not just saying this because I only have 1 bath per month…)

Tejvan
http://www.economicshelp.org

]]> By: Matt Nolan http://www.tvhe.co.nz/2008/02/14/water-is-there-a-role-for-demand-management-at-the-household-level/#comment-876 Thu, 14 Feb 2008 03:13:00 +0000 http://tvhe.wordpress.com/?p=243#comment-876 It’s a difficult issue, and without running some cost-benefit analysis it is difficult to figure out what the best option is.

I mean, we need a price in order to allocated the scarce resource that is water. However, we also need to ensure sufficient investment in infrastructure, and security of supply – it sounds like the electricity generation industry doesn’t it 😉

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