We can all agree that water is essential to life, whether it be the life of that plant in the corner of your living room, the fish on the menu tonight or the life of your child.
Water has an inelastic demand in the short-term. The price of water won’t affect demand, since you ‘gotta have it’. Of course, the value of water (and the price one is willing to pay) increases quickly, the longer one goes without……especially on a hot day.
Pure water has more value than tap water. When water is plentiful, people will pay a market-driven price for premium water (@AquahealthWater). When clean water is scares, any safe water source is valuable and potentially very costly.
The United Nations has deemed water a ‘human right’. Everyone must have clean water. But at what price? Economics dictate that scarce clean water can be expensive. Catarina de Albuquerque at her role in the UN is addressing this problem. I read about her @wateraid. She believes clean water needs to have a market price and that the private sector, in partnership with Governments and NGOs, has a major role to play delivering water to places in need. Please enjoy more about what Catarina is doing HERE.