Posts tagged ‘Water Price’
According to the United Nations, around 1.2 billion people, or almost one-fifth of the world’s population, live in areas of physical water scarcity, and 500 million people are approaching this situation.[i] However, an even more troubling statistic is that another 1.6 billion people, or almost one quarter of the world’s population, face economic water shortage – this is largely due to both severe weather patterns and the infrastructural inability for countries and governments to effectively take water from rivers, aquifers and other sources, and deliver it to the consistently growing list of end users (i.e. household water consumers).
The Annual Meeting of the New Champions 2011 (“Summer Davos”) is taking place this week, and we thought it’s a great venue to announce our first research report. This report, planned to be the first of many, shows the connection between water prices and water loss rates. Water loss is a key metric that impacts the sustainability, conservation and efficiency of water networks.
In some of the world’s cities, water is priced lower than the costs to pump and transport it, let alone sustain its delivery infrastructure: the network of pipes, pumps, reservoirs and valves that brings water to our homes. In some places water is free.
The question raised by TaKaDu’s research was whether the price of water also affects water loss rates. Theoretically, water underpricing can lead to undervaluing of water and underinvesting in the water distribution network.
Water pricing doesn’t impact residential consumption alone. Globally, only about 10% of water is used residentially, while the remaining 90% is used for agriculture and industry, so water mispricing obviously affects the way all sectors use water.
You can read more by clicking on the ‘Continue reading’ link below.
How much does water cost? The answer may not be as simple as you think. True, like most commodities, it is priced differently in different parts of the world, and the retail price does not always reflect the wholesale price, so the right answer is “depends”. But things actually get much more complicated than that when we try to estimate the true cost of delivering water.