By Steve Maxwell
This publication is a compilation of contemporary JAWWA articles in regards to the demanding situations and possibilities within the water marketplace. It addresses themes comparable to the worldwide water challenge, the worldwide water undefined, plus traits and advancements within the
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Additional info for The Business of Water: A Concise Overview of Challenges and Opportunities in the Water Market
Utilities incur capital and operating costs, and set and apply prices; therefore, these costs and prices are easily identified and measured. Value is harder to measure. ” As noted earlier, economists define value as the maximum willingness to pay—in terms of money or other goods and services—that a person would exchange for an additional unit of a good or service. , the demand curve reflects the WTP-based value of water to its users). ” If water were exchanged in what economists refer to as a perfectly competitive market, then the price of water would be determined by the point at which the supply curve (cost) and demand curve (value) intersect.
Denver. CASE STUDIES REVEAL MORE ON WATER VALUES Several case studies were developed as part of the AwwaRF project on the value of water. The case studies span the nation from Massachusetts (low- and no-flow conditions in the Ipswich River caused by excessive withdrawals) to California (the value of recycled water in San Diego). They also stretch from Florida (developing high-cost regional water supplies, including desalination, in the Tampa region) to Arizona (the value of in-stream and Phoenix-area extractive water uses for the Verde River).
Water is vital to each and every one of us, and without it, life cannot exist. Relative to its true value and significance, water isn’t expensive—it is ridiculously cheap! In fact, public drinking water availability in the United States is one of the great economic bargains of all time. You’d have to look far and wide to find another product whose real value to the consumer is so high relative to its price—and to find a commodity whose price is typically so unrelated to its actual cost. A look at the facts and some interesting anecdotes quickly confirms this.