Water is the essential ingredient for all kinds of products made in developing countries, yet assessing its value raises issues
As American financier Warren Buffett once said, “price is what you pay, value is what you get”. Price is set by the market. Value needs to be assessed and determined. This is worth bearing in mind as we consider the value of water – for it is worth far more than what we pay for it.
All sorts of factors influence water prices: supply and demand, technology and regulation. Determining value is more challenging, especially in many developing countries where water is regarded as priceless.
As the world’s population swells, climate change intensifies and water usage by agriculture and industry continues to increase, water demand grows. It is estimated that by 2030 demand will outstrip the capacity of existing infrastructure by about 40%, rising to over 50% in rapidly developing countries. A whopping £13tn of investment is needed in the world’s pipelines, storage and treatment plants to keep pace.
Continue reading at Guardian Sustainable Business.