Friday, October 19, 2007

Headline: "Water consumption to be cut in half"

Gulf News
Majid Al Mansouri, Secretary general of the Environment Agency Abu Dhabi, said Abu Dhabi Government will reduce water consumption rate from 550 gallons per head per day to 250 gallons per head over the next five years.
Let's examine the price charged for tap water. It's priced below its cost, and hence the incentive to economize on its use is too weak. In some areas water usage is not metered, or if it is metered it is not billed or bills are forgiven.

People do respond to incentives, if the incentives are in place.

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