and value of water Aguanomics David Zetland The law of demand shifts and slides Theres no diamondwater paradox I know price Do you know value Market vs nonmarket values Fixed prices affect quantity demanded ID: 656908
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Slide1
Untangling the price, cost and value of water
Aguanomics
David ZetlandSlide2
The law of demand(shifts and slides!)Slide3
There’s no diamond-water paradoxSlide4
I know price. Do you know value?Slide5
Market vs. non-market valuesFixed prices affect quantity demanded, and
Markets use prices to reconcile demands, butNon-market values cannot be priced, soEnvironmental water should be set aside, andEconomic water should be priced!Slide6
Prices, costs and value Prices can be above or below cost (by fiat)
Costs include OpEx, CapEx and resource rentsValues cannot be known but can be reconciledLow prices take resources from tomorrow or deplete the environment todayAdvice
: Uniform tariffs for all customers and income supports for special cases