Ring of Conservative Sites Ring of Conservative Sites
JOIN!

[ Prev | Skip Prev | Prev 5 | List |
Rand | Next 5 | Skip Next | Next ]

Monday, July 11, 2005

Need Water? Raise Its Price

I guess water is up there (or higher) in the needs scale than medical insurance. The Commons, a blog that suggests free market solutions to environmental issues had the following on Italy's water crisis:

No Market, No Water Posted by Carlo Stagnaro · 1 July 2005 · Water

As every Summer, Italy is under stress because of water shortages. Irrigation resources are threatened, according to a farmers' association. Luckily, the situation is still under control. The problem is more general. If water problem is felt like a real one -- as all Italian newspapers' frontpages have been suggesting in the last few weeks -- then a long term solution should be considered. In Italy water is mostly managed by formally private companies, that are actually owned by municipalities. Also the price of water is to a certain extent regulated by specific laws. Thus, water shortage is primarily a failure of public management. Prices are kept artificially low, especially in hot seasons, and overuse is consequently incentived.

Of course there is only one way to solve the problem: that is, allowing prices to grow as water gets scarcer, in order to incentive a wise management. For that to be done, however, we need municipalities getting out of the market and, more important, getting rid of the barriers to entry that in fact protect local markets.

Is there an echo in this room?

1 Comments:

At 12:54 PM, Anonymous Anonymous said...

Best regards from NY! film editing schools

 

Post a Comment

<< Home

Ring of Conservative Sites Ring of Conservative Sites
JOIN!

[ Prev | Skip Prev | Prev 5 | List |
Rand | Next 5 | Skip Next | Next ]