The Strange Economics of Water

Here now is a guest post from Charles Fishman, whose new book (reviewed today in the Journal, btw) is called “The Big Thirst: The Secret Life and Turbulent Future of Water.” (Fishman’s earlier book is “The Wal-Mart Effect.”) The Big Thirst covers some of the four billion-year history of water on Earth, and its little-known but abundant fourth state: “molecular water,” fused into rock 400 miles deep, which is where most of the planet’s water is located. Fishman tackles the debate around water as an increasingly precious resource while reminding us that water can’t actually be “used up.” But, he makes clear, the era of easy water is over, and that’s something to think about, hard.


What Do the Economics of Bottled Water Tell Us About the Economics of Water? A Guest Post
By Charles Fishman
Just before last year’s NBA season, the Cleveland Cavaliers quietly removed all 18 water fountains from their home stadium, the Quicken Loans Arena, “the Q,” which seats 20,500 people. Q managers taped up signs where each water fountain had been that read: “For your convenience, complimentary cups of water are available at all concession stands through the Q.”

Read more here... http://www.freakonomics.com/2011/04/15/ ... uest-post/

A lot of people talk about oil being the thing to watch as THE limit to economic growth, I'd argue that water shortgages are going to hit us sooner, and harder.

Water has always been the big factor in economic growth of areas--look at Las Vegas pre and post Hoover Dam. But, it's also a survival factor. It's a scary thought if you look at the way oil is being handled nowadays and consider if water were handled the same way in the future. Talk about wars....

Wasn't this work written by McInnis's ghostwriter? rofllol

AspenValley wrote: A lot of people talk about oil being the thing to watch as THE limit to economic growth, I'd argue that water shortgages are going to hit us sooner, and harder.

Fresh potable water is a limiting resource, but unlike oil we do have viable alternatives. Those alternatives include desalination of sea water or more saline groundwater. Not cheap by any means, nor does it taste as good as fresh water. Desalination is prevalent in Saudi Arabia today. They use gas (that they used to flare) to run their plants, thus keeping costs down. I can see gas or gas hydrates playing a similar role in our future. Then there is also the possibility of water reclamation much less expensive and ecologically friendly. This is being used in some places already (read a Scientifc America) article years ago on it

WHile a limited resource ultimately, it is far less of a limited resource than oil. Competition always exists for limited resources may equate to war.