A couple of resource economists from the ANU came out today with the not outlandish proposal that scarcity should be factored into the price of water. They assert that water should be more expensive during a drought. They also claimed that Sydney’s desal plant is a waste of money, a point which is open for debate. Yes, the dams are full now, but how high a price can you put on urban water security?
The statement of the economists are not particularly remarkable, but the response of the NSW state minister for water was worth noting. According to the SMH, and I can’t quite believe he actually said this, Nathan Rees suggested that the dramatically fluctuating price of water would make business planning impossible. Gee, I can’t think of any other business inputs that have fluctuating prices…except um EVERYTHING ELSE! I think business would survive somehow