Pricing and individual choice in urban water conservation
Water Economics and Politics Seminar Series
/ Urban water management
Speaker: Distinguished Prof. Emeritus Gary Libecap | University of California, Santa Barbara (UCSB), National Bureau of Economic Research (NBER), United States
Time: 16:00 South African Standard Time (SAST) | GMT +2
Topic: I discuss two topics: urban water pricing and rural-to-urban water transfers. For the first, I point out that demand management via tiered pricing is used far less than (likely more costly) supply augmentation, where costs and spread uniformly across all consumers. Bureaucratic and political incentives drive this inequitable and likely less efficient management approach. In the second, I describe the price differential between urban and rural water and the efficiency gains from reallocation. Source rural community resistance could be mitigated with an extraction tax similar to what is used in other natural resources.
About the speaker: Gary D. Libecap, Distinguished Professor Emeritus at the Bren School of Environmental Science & Management and Economics Department at the University of California (UC), Santa Barbara, emeritus and National Bureau of Economic Research. Gary Libecap has long worked on the development and impact of property rights institutions, particularly for natural resources: oil and gas, timber, rangeland, minerals, water, and fisheries. He has authored or coauthored 14 books and over 100 peer reviewed articles and chapters; awarded the Elinor Ostrom Lifetime Achievement Award in 2022; was Pitt Professor of American History and Institutions, Cambridge University 2010–2011; and Erskine Professor, University of Canterbury, New Zealand 2019. More on garylibecap.com.