Recently, I have been writing a lot about water- I feel honored that one of the local papers here in Brooklyn, Our Time Press, picked up one of my posts in its entirety to republish. I am trying to get my ideas out into the world, and it is gratifying to know that some people are listening.
In previous blogs (August 27, September 3 and September 10), I have made the case that Earth is not dealing with water shortage, but rather with water stress. Given that 70% of the planet’s surface is covered with deep oceans, and that the global water cycle accounts for the water’s flow through land, sea and the atmosphere, we will not have an actual shortage of water so long as the planet remains a habitable environment. On the other hand, there is a serious water stress that results from the imbalance between supply and demand of fresh water. My September 10 blog focused on one way of trying to alleviate the stress in fresh water: recycling used water, thus forming a smaller, separate fresh water cycle within the global one.
In this and the next blog, I will explore the “classic” economics of dealing with imbalances between supply and demand. This blog focuses on the demand side. Economists tell us that there are two conventional ways to reduce demand of any commodity: either use less or find alternative commodities that will function in a similar way. Unfortunately, water is distinct from other commodities on two levels. First, both physics and biology tell us that liquid water is unique in its ability to support life – no substitutions are possible. Additionally, the adequate availability of fresh water is now being regarded as an element of international human rights law.
Like any other commodity, there is no question that if we raise the price of water we will reduce consumption. The figure below, taken from a study on the effects of water pricing and wealth profiles on water use demonstrates the impact clearly.
The study was carried out by four Florida water management districts. The decline in use shown with the increased price is general. The price-induced changes in water consumption vary according to the property value. Profile 1 represents the properties with the lowest assessed values, while profile 4 shows those with the highest. It is clear from the graph that the properties with the highest assessed values had the correspondingly highest consumption of water while it was offered at a fixed price. However, these properties also reflected the largest price-induced changes. This is likely due to the fact that a significant portion of their consumption was for discretionary uses, which are not difficult to adjust. We must, however, bear in mind that this study was done in Florida –a rich American state in a rich country. It was also confined to single family houses, a distinction that further classifies the residents as belonging to an above average wealth bracket.
The table below tries to account for the global picture. It shows the water tariffs in various cities in the world that represent most global income levels. The United Nation defined water scarcity as water availability below 1000m3 (35,300ft3) of fresh water per year. The table compares the price of this quantity of water to the country’s Gross Domestic Product (GDP) per person. The water tariff data for the various cities is taken from The Pacific Institute and the GDP from the World Bank database.
|
Country |
City |
Water Tariff (in US$/m3) (2008) |
GDP/Person (in US$) (2008) |
Tariff Calculated for 1000m3(US$) of Water |
Percentage of the GDP/Person That Goes Toward the Water Tariff for 1000m3 |
|
Madagascar |
Antananarivo |
0.49 |
471 |
490 |
104 |
|
Kenya |
Nairobi |
0.34 |
786 |
340 |
43 |
|
India |
Kolkata |
0.15 |
1042 |
150 |
14 |
|
Egypt |
Cairo |
0.07 |
2157 |
70 |
3 |
|
China |
Beijing |
0.54 |
3414 |
540 |
16 |
|
Jordan |
Amman |
0.49 |
3797 |
490 |
13 |
|
Brazil |
Rio de Janeiro |
0.97 |
8623 |
970 |
11 |
|
Mexico |
Acapulco |
0.50 |
9508 |
500 |
5 |
|
Turkey |
Istanbul |
2.44 |
10379 |
2440 |
23 |
|
Venezuela |
Caracas |
0.21 |
11223 |
210 |
2 |
|
Russia |
Moscow |
0.82 |
11700 |
820 |
7 |
|
Japan |
Tokyo |
1.81 |
37972 |
1810 |
5 |
|
New York |
USA |
2.11 |
46760 |
2110 |
5 |
|
San Diego |
USA |
4.10 |
46760 |
4100 |
9 |
|
Copenhagen |
Denmark |
8.69 |
62596 |
8690 |
14 |
It is clear from the table that if an average resident of Madagascar (a lovely country that I visited for a few weeks) tries to pay his part of the tariff for this amount of water, he will end up paying more than his average share of the country’s GDP. He cannot do it. The same holds for much of Africa and even India. Meanwhile, an American that lives in New York ends up paying less than 5% of his share of the GDP, since New York doesn’t suffer from a shortage of fresh water, but an American in San Diego, which does suffer such a shortage, ends up paying about twice that. The water tariffs are not based merely on the costs of fresh water –instead, they usually include the costs of water treatments, water storage, transportation, collecting and treating waste water, billing, and in the case of privately run water companies, return on investment. In most cases the tariffs are regulated and should include recovery and maintenance of the water system and environmental criteria such as incentive to conserve. The large disparity between the tariffs is an indication that political considerations and ability to pay are important components of the mix. Since availability of water is essential for both the rich and poor, many of the basic requirements of sustainable systems of water supply and sanitation are either nonexistent or not being met.
A recent example from Venezuela illustrates some of these issues: Andre Soliani, a reporter from Bloomberg News wrote the following on September 4:
The carcass of a dead dog floats on the lake that supplies tap water to 750,000 Venezuelans. Witch doctor Francisco Sanchez has just dumped the previous night’s sacrifice from a cliff, contaminating the resource that has become more scarce than gasoline in Caracas.
The water from Lake Mariposa, polluted by sacrifices and garbage from a local cult,is pumped to a 60-year-old treatment plant that lacks the technology to make it safe for drinking, said Fernando Morales, an environmental chemistry professor at Simon Bolivar University in Caracas who has visited the site.
Eight kilometers (five miles) away from the lake, in Caracas, sales of bottled water are booming, with families paying the equivalent of $4.80 for a five-gallon jug, twice the price of gasoline.
“The treatment process has not adapted to the steady degradation of the water source,” Morales said in an interview at the university campus Aug. 22. “I wouldn’t use this water at home.”
Venezuela is an oil rich country that sits somewhere in the middle of the table in terms of GDP/person. Its water tariff is among the lowest in the table. Lower than Madagascar. Even so, 1000m3 of water amounts to approximately 50,000 five-gallon jugs that will cost $240,000 a year. This is way out of the average Venezuelan’s ability to pay – it is obvious that not every Venezuelan is taking part in the shift towards bottled water. Neglect has consequences.













Citizen of the World?
On my way back from Mauritius (see July 3 blog) we passed through Israel to attend a family wedding and meet up with some old friends. During a pleasant dinner with some of these good friends, I was asked if I was planning on returning to live in Israel.
I arrived in Israel in 1945 with my mother (three years before the creation of the state) as a Holocaust refugee. I grew up there, I was educated there, I fought in some of the wars there, my son was born there, and even though I have lived in the United States since 1969, I still feel Israeli. My wife is American born and my whole family, all of which lives in the United States now, is proud and happy to be American. I hold both Israeli and American citizenships, and I share their pride.
Unavoidably, any conversation about Israel has to address the political climate. My friends, my wife and I all believe that a political agreement with the Palestinians to create a Palestinian state side by side with Israel is absolutely necessary and the conditions to facilitate such a solution must be created in the near future.
My answer to my friends’ question was that I am happy where I am and that I cannot see myself returning to Israel to retire. They were not surprised by my answer, having decided that I have become a “true” American. I responded with a “declaration” that I actually think of myself neither as an American, nor an Israeli, but rather as a “Citizen of the World.” I explained that I dearly love both Israel and the United States, but I have come to realize that the planet that we live in is in peril and this affects all of us.
I left the dinner with a bad taste in my mouth. “Citizen of the World???” What was I thinking? It sounds bombastic and meaningless. I was absolutely convinced that everyone around the table felt the same way.
I came back home, and as I was going through the New York Times, one of the first things that popped up was an obituary and front page article on Garry Davis (NYT-July 29) by Margaut Fox: “Garry Davis, Man of No Nation Who Saw One World of No War, Dies at 91.” Before reading it, I was completely ignorant about his existence and the movement that he was promoting.
According to the article, Garry Davis renounced his American citizenship on May 25, 1948. He remained stateless until his death. This self-inflicted status gave him some difficulties in traveling, but he managed to work around them. His theory was that most wars are caused by sovereign states, so, if we were to eliminate sovereign states, we would ensure peace. Renouncing his citizenship was the first step in that direction. He was regarded as the Dean of the “One World” movement that, according to the article, can count approximately one million members. He referred to himself not as a person without a country, but instead, as one without a nationality. According to the article, adherents to the One World movement have included some very prominent people, among them, Albert Schweitzer, Jean-Paul Sartre, Albert Einstein and E. B. White.
I was not aware of any of this at the time of my short dinner chat in Israel. However, learning of it didn’t make me feel better; I am not inclined now to join the “One World” movement and renounce my two citizenships. My concern during the discussion was not for world peace; instead, I looked to our ability to take care of the planet, focusing on climate change. If the planet starts to become uninhabitable, things all around us will get ugly, both physically and politically.
At present, world governance is based on sovereign states. Only sovereign states can enforce rules and regulations, including those agreed upon in international treaties.
Abolishing sovereign states would not eliminate wars. Some of the most destructive wars in recent history didn’t take place between sovereign states, but were instead civil wars or wars focused on international terrorism. Renouncing nationalities would only make such wars worse. Abolishing states and relying on “World Government” would remove any form of control from the hands of the constituents and make governing impossible.
During my recent travels in Southern Africa, I observed how much of a difference the presence or absence of effective government made in how people were doing. Four countries that we visited during our recent trip will serve to illustrate the importance of functioning government to the well being of the people and the environment: Botswana, Mauritius, Zimbabwe and Madagascar. Botswana and Zimbabwe are land locked states, while Madagascar and Mauritius are islands in the Indian Ocean. All four countries got their independence from the colonial powers after 1960, starting out as very poor nations with little infrastructure. Botswana and Mauritius are now flourishing, middle income, fast growing countries, with stable governments. Zimbabwe and Madagascar, meanwhile, are failed states (this is a commonly accepted term there), whose income/capita is not much different from the corresponding data from when they first got their independence. (One can get more data about the economic performance of all four countries at the World Bank website).
In the coming blogs, I will focus on environmental impacts in some of these countries and the mitigation and adaptation steps that are being taken. The performance of the local governments will play a central role. There is no question that the present state of world governance can be improved, mainly through the establishment of fair enforcement mechanisms to preserve the physical characteristics (both regional and planetary) that are essential to our collective survival. Abolishing national government would have the reverse effect.
Comment on a potentially game changing Op-Ed in Thursday’s (August 1, 2013) New York Times.
It is rare for me to post a comment about a current event after having already written my blog. It is even more uncommon for me to agree with every word of an Op-Ed written by four prominent Republicans. Thursday’s Op-Ed in the New York Times, “A Republican Case for Climate Action” by William D. Ruckelshaus, Lee M. Thomas, William K. Reilly and Christine Todd Whitman, marked just such an occasion.
Republicans have occupied the White House for 20 of the 31 years since the beginning of Ronald Reagan’s presidency. The four writers of the Op-Ed collectively held the office of the Administrators of the Environmental Protection Agency for 12 of these years. Anne Burford, the first administrator of the EPA under President Reagan, died in 2004. As they and a growing percentage of the population concede, the numbers with regards to climate change speak for themselves. The acknowledged need for domestic and international action to mitigate climate change is no longer divided neatly between our two major political parties. Hopefully this will lead to progress on more than just a dogmatic note.