ECON 250D1 Lecture 10: Chapter 9 - Lecture 10
15 Dec 2019
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The ultimate renewable resource: water is also scarce, but if it becomes sufficiently scarce, disastrous things will happen. No, sewage system than go through a treatment plant, aquifers or back down on our heads as raindrops. Agriculture, it does not destroy the stuff but most of the water used is subsidized by taxpayers so in the end, farmers gain taxpayers lose. Use it or lose it , would be better used if it was left in the streams. Second, we not only subsidize water use for agriculture, we also routinely forbid farmers from selling or leasing water they own to other users, especially non-agricultural users. These restrictions on the use of water yield lower overall wealth for us: myth 3: water is different from other goods. No, may seem like it but although demand for water in some uses is relatively inelastic remember this!!!!
