Valuing Water: Economic Perspectives on Conservation

Economics of Water

Fishman asks the reader, what is water really worth? Can we put a price on water? In Chapter 5 and Chapter 9, Fishman uses economics to show how large companies must start regulating and putting price on water. He is giving it value instead of it being ‘free’ leads to an increase sustainability and change. He begins with the large industries use of water using monopolies and privatization to help with water conservation. Then, he argues using the economist Mike Young about the critical human need to water compared to the secondary use. Fishman uses the economics of water to his advantage to further his argument that our water will not be abundant forever.

In Chapter 5, Fisman focuses on how large industry handles water

This shows us that the economy relies a lot on water and resources and money is a large driver. It is multi billion dollar companies pushing for water conservation and change. Fishman writes: “companies are starting to gather the kind of information the latest tem measure not just their water use, and their water costs, but their water productivity - how much work they get from a gallon of water, how much revenue, and how much profit” (117). This water insecurity and awareness is not coming from science but from people who run companies like Mitchell Wool, Coca Cola, Levis, Intel, and IBM. He uses numbers (in billions) of these companies value and compares it to their use of water. He drills into each company how they are using water and the economy to reflect the anxiety and security of

There is a lot of money involved for every business. For example, CoCa-Cola could “buy every single person in the world more than fifty cans of Coke or Sprite a year” (120). Their large stake in water is because if water goes away company goes away. This is privatization which is running show more than politics. This is creating a monopoly owns access water whatever want water will always be free access cost money. It is also saving the company money and making them “water neutral”. Fishman uses economics to his advantage because big companies see the business in water and economic value of it then start to use and think about it