prior probability

That is the title of David Zetland’s latest book. In David’s words:

Do you worry that there is not enough water for people, the economy, and environment? Do you wonder if the water in our taps and rivers is safe or polluted? Do you want to know if farmers waste water, utilities charge too much, or bottled water destroys ecosystems? You’re not alone in asking questions. The headlines say “drought, pollution, conflict and insecurity,” but the stories offer few solutions. “Living with Water Scarcity” clarifies the connections among personal and social water flows in an accessible style. It describes the origins and costs of water scarcity and explains how to address it with fair and pragmatic policies. You and your community can live with water scarcity — just manage water as the precious resource it is.

In other words (spoiler alert!), water must be priced in such a way as to reflect its underlying scarcity, just like any other scarce commodity. To learn more about David’s new water book, check out his eight-minute video introduction in which he explains his economic approach to water scarcity (see YouTube video above), or if you prefer, spend those eight minutes checking out his cool and informative website aguanomics.