Water Costs Compared

March 31, 2015


Water prices in Asia are significantly lower than in the developed world. While this may be a boon for Asia's consumers, it may jeopardise future water supplies. 


Average Water Tariffs (RMB/m3) in a Selection of Countries

Source: Nomura Research Report: Water & Environment (2010) 


Underpricing can lead to excess consumption, given that the scarcity value of water is not fully reflected in the price. Though a base-level insight from resource economics, it is nonetheless a powerful one because water resources are dangerously stretched in the Asia-Pacific region, particularly in India and China, it's most populous countries. 

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