Learning Resources Network (www.baiwangezi.com): Economics from the Perspective of Water Conservation
For a long time, people have always liked to promote water conservation, but rarely consider whether such practices are effective. We often see water-saving propaganda in various media, and sometimes even encounter street campaigns distributing related materials. In fact, not only is this practice ineffective, but it also causes a waste of resources. To put it metaphorically, it's like failing to pick up the sesame seeds while dropping the watermelon.
One must realize that choosing to advertise for water conservation in newspapers inevitably squeezes out opportunities for other advertisements, and the cost of what is given up is significant. Therefore, the reality is that the "sesame seeds" haven't been picked up, and the "watermelon" has been dropped. From an economic perspective, the answer to achieving water conservation through publicity and education is negative. It cannot be denied that there are many instances of water resource wastage in real life, but few people seriously consider why this happens. There may be many reasons, such as weak awareness of water conservation or low levels of personal ideological enlightenment. However, no matter how many reasons there are, the one factor that can have a widespread impact is price.
To cultivate personal water conservation habits, the correct approach is not through education but through pricing mechanisms. A basic economic principle is straightforward: the lower the price, the higher the demand. In a sense, the degree of waste depends on the price level. If the price is too high, people's awareness of water conservation becomes stronger. After all, wasting water means spending your own money, which naturally makes one feel the pinch. Therefore, if there is concern about a water resource crisis, the solution is not through publicity and education, but by setting the right price.
The higher the price, the more people will carefully use resources and actively seek alternatives. Setting the right price does not necessarily mean raising the price, but ensuring that the price eliminates tension. If a product is in short supply, the solution is to raise its price. Even though some cities face water shortages, prices should not be increased solely for the purpose of promoting water conservation. No matter how special water resources may seem, they are still ordinary commodities. When prices rise, supply increases, and demand is restrained.
Many times, environmentalists fail to respect the facts themselves and instead exaggerate the water resource crisis artificially. Environmentalists believe that if we don't pay attention to water conservation, the last drop of water will be our tears. In fact, as long as we respect market rules and use price as a signal to reflect the scarcity of water resources, there will be no so-called water resource crisis. After all, more than 70% of the Earth is ocean. Even if fresh water runs out, as long as the price is high enough to make it profitable for investors, developing seawater resources will not be a problem.
Many water resources suffer from destruction and pollution not because of insufficient environmental awareness, but because the property rights of these water resources have not been clearly defined. This phenomenon is essentially a reflection of the tragedy of the commons. Therefore, the most important issue is not to strengthen environmental awareness through publicity, but to clearly define the property rights of water resources.
When resources become tight, as long as we do not forget the role of price, problems can be solved. Blaming the waste of water resources on weak environmental awareness will never solve the problem. Therefore, among countless reasons, the reason of price stands alone.
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