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Comments on: Metering and the market for water http://www.tvhe.co.nz/2008/11/28/metering-and-the-market-for-water/ The Visible Hand in Economics Thu, 27 Nov 2008 21:53:59 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: steve http://www.tvhe.co.nz/2008/11/28/metering-and-the-market-for-water/#comment-3711 Thu, 27 Nov 2008 21:53:59 +0000 http://tvhe.wordpress.com/?p=2151#comment-3711 well it depends how you look at the water market. the market can be constructed in a different way, whereby consumers purchase the “service” of Access to purified water.

OR

If it is a product of quantity of purified water.

The first relies on an infinite ammount of unpurified water, and as the demand for water increases there has to be more and more expensive plants to provide the service – eventually desalinisation plants. Everyone pays the same because each buys the same service, even if some use a greater quantity. What opponents to metering don’t realise is that under this model, society will end up paying more for each litre of water, and consuming more water… furthermore, some will not be able to afford the access to water and will miss out. under the market for a quantity of water, everyone gets water, but those who cannot afford it must ration their use.

]]> By: Owen http://www.tvhe.co.nz/2008/11/28/metering-and-the-market-for-water/#comment-3710 Thu, 27 Nov 2008 21:53:29 +0000 http://tvhe.wordpress.com/?p=2151#comment-3710 As an Auckland homeowner and ratepayer, we get a quarterly (i think?) bill for our water useage from Metrowater. I assume it is a fixed price per unit rather than a floating price. Certainly makes me think about our water useage, but then I have a economics degree and therefore not a typical consumer..

]]> By: agnitio http://www.tvhe.co.nz/2008/11/28/metering-and-the-market-for-water/#comment-3709 Thu, 27 Nov 2008 21:02:27 +0000 http://tvhe.wordpress.com/?p=2151#comment-3709 Interesting take here

http://greenvoices.wordpress.com/2008/11/27/counting-the-drips/

Aparantly there is some evidnence the the demand for water is quite price inelastic, not surprising really when you think about it:)

]]> By: agnitio http://www.tvhe.co.nz/2008/11/28/metering-and-the-market-for-water/#comment-3708 Thu, 27 Nov 2008 20:02:08 +0000 http://tvhe.wordpress.com/?p=2151#comment-3708 No idea, I live in an apartment building so all that stuff gets taken care of in the background:)

]]> By: goonix http://www.tvhe.co.nz/2008/11/28/metering-and-the-market-for-water/#comment-3707 Thu, 27 Nov 2008 19:57:24 +0000 http://tvhe.wordpress.com/?p=2151#comment-3707 Do you know much about how water is metered/priced in Auckland agnitio? I read somewhere (albeit a blog comment elsewhere) that it is to some extent privatised.

]]> By: agnitio http://www.tvhe.co.nz/2008/11/28/metering-and-the-market-for-water/#comment-3706 Thu, 27 Nov 2008 19:50:51 +0000 http://tvhe.wordpress.com/?p=2151#comment-3706 Sounds like a fixed feed that doesn’t vary with usage isn’t working. I agree that just telling poeple what their consumption is isn’t going to the trick. The greenies will adjust because it will make them feel good about themselves as will some other people.

However, alot of people just won’t care unless there is a direct cost associated with its use. Bring on a price for water I say!

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