Should we Increase the Price of Water?

Tara-Jane Vanderboom

Mr. Reuter

Economics

21 March 2017

Should We Increase the Price of Water?

There is something that we consumers use in our daily lives that we cannot survive without and that special something is water. The price of water follows the law of supply, as water has such a high demand that suppliers will sell it for an incredibly low price even though it is such a crucial resource. It is interesting to see that we spend so little on water compared to what we spend on other products that aren’t even remotely tied to our survival. It has been debated however, whether or not the price should be increased because of this fact, and also because the low cost is causing series water wastage form most Americans. The opportunity cost of having cheap water is having an increase in the amount of water we waste, as we don’t have to pay significantly for the consequences.

It gets a little overwhelming and surprising when we realize how much water we use in our homes alone. People who live in areas with abundances of water sources don’t usually even think about how much water is being used, but places mostly in the south-west need to be aware when doing the following:

As seen, the amount of water used in homes can vary significantly. If we take a closer look at toilets specifically, it’s a great example of how we add to wasting millions of gallons of water

multiple times a day.  “Older toilets can use 3.5, 5, or even up to 7 gallons of water with every flush.  Federal plumbing standards now specify that new toilets can only use up to 1.6 gallons per flush (GPF), and there are high efficiency toilets that use up to 1.28 GPF” (“Toilet”).

Certain states that have had serious water scarcity problems have made decisions that didn’t change the price of water for their citizens, but rather made them account for the extra water they use. California for example, made it a crime to waste water doing things like hosing a driveway or a sidewalk due to the severe droughts. “Such efforts may be more effective than simply exhorting people to conserve. In August, for example, cities and towns in California consumed much less water — 27 billion gallons less —than in August last year” (Porter). This tactic can be considered to be an indirect way of paying for extra water usage, and the results actually turn out to be helpful. If this significant of progress could be made in one city, then it can be replicated throughout the country.

Because water is in such high demand, it has an inelastic quality because people need water to survive and for our daily activities. The price of water doesn’t actually follow the normal change once it’s in shortage, as we see in California they don’t pay any more than the rest of the country even in times of serious droughts. Should this be the case? Should citizens who happen to live in these water ridden areas have to pay more or should they at least be held accountable when they use more than they need to? Should water wastage be a nationwide crime to further better our water conservation or keep it at the price it is?

Works Cited

“Toilet.” conserveh20.org, http://www.conserveh2o.org/toilet-water-use.

Porter, Eduardo. “The Risks of Cheap Water.” The New York Times, The New York Times Company, 14 Oct. 2014. https://www.nytimes.com/2014/10/15/business/economy/the- price-of- water-is-too-low.html?_r=1.

“Let’s Start a Big Bowl Movement Together.” Project Drop-A-Brick, Drop-A-Brick, http://www.projectdropabrick.org/the-second-post/.

Lurie, Julia. “Here's How Much Water Golf Courses, Ski Resorts, and Pools Are Using in California.” Mother Jones, Mother Jones and the Foundation for National Progress, 3 Aug. 2015. http://www.motherjones.com/environment/2015/05/golf-pools-water- drought-california.  

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