Water Costs Compared

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.

#Asia #Water #Infrastructure #China #Reform