Question

Canada's Water Policy: Explain would the following policy reforms listed below, create a more efficient and sustainable water industry for Canada:

- implement universal residential water metering

- move to full cost accounting

- institute seasonal surcharges to better reflect the marginal costs of water use during peak summer months; and

- amalgamate smaller, high-cost water agencies to exploit scale economies and promote innovation.

Answer 1

1. Adopting universal meter reading will help to track exact consumption data trends and help in implementing quota system as well as tax system where beneficiary gets subsidies and polluter gets taxed.
2. Moving to full cost accounting is exceptional as this will help identify direct and indirect costs which later can be minimised in entire water chain and hence increasing sustainability.
3. Institute seasonal surcharges will not help much as either ways people will consume more water and be ready to pay, as this period suggests water is more scarce and in high demand.
4. Amalgamation of smaller and higher water cost agencies will help in bringing down overall cost kf supply through optimisation and synergy benefits and thus low cost can be passed on to consumer. This will benefit consumers and hence optimum level kf quantity of water will be used at affordable cost.