Thursday, May 08, 2014
Raise the Price of Water in California
Read this NY Times piece about coping with drought in California. Starbucks charges $2 for a coffee and many,many people buy it. A gallon of water in Los Angeles costs .5 cents. Is that the market price today? Raise the price to 2 cents a gallon and watch "the great shortage" vanish as people pull out their green grass and find many other low cost adaptation strategies. Why do you fear market solutions?