To Price or Not to Price...

The world is quickly running out of fresh water. The unsustainable use of fresh water has left many areas as deserts, a future that could envelop a much greater share of the world if fresh water supplies continue to dwindle. 

As Tim noted earlier, Canada holds approximately 20% of the world's fresh water. And when you live within Canada, it seems as though we could never possibly run out of our vast supply. But do not be fooled. Canada's greatest sources of fresh water, the Great Lakes, have been steadily declining in past years and continue to do so at increasingly higher rates.

The water needs to be protected. While there are several factors affecting Canada's water supply (climate change, pollution, oil development, NAFTA, etc), nothing is more influential than general consumption. The average Canadian uses nearly three times as much water as the average European. And it is not surprising. With seemingly unlimited supplies of fresh water at virtually no cost, why would Canadians feel inclined to conserve water?

Perhaps Canadian water suppliers should begin enforcing price controls. Similar to other utility usage, like electricity, a price could be put on a measurable amount of water and individuals could be charged for their usage. Or even a tax could be imposed, whereby users are taxed for consumption above a particular level. This would provide an economic incentive (one of the most powerful of incentives) to curb unsustainable water usage, ideally to the point whereby Canada's fresh water stocks could effectively replenish themselves.

A number of issues arise with water pricing, but here are two to quickly ponder:

If water is to be priced, who gains the revenue? If water is a public good, should water revenue be allocated to a particular party or shared among the masses?

Is it morally acceptable to price water? It is considered a universally-accepted human right. Should we be able to put a price on a human right, regardless of what it's intention may be?