causes of shortage of fresh water in Australia
Water is crucial for life. Human beings and plants depend on water for life survival. Economics have tried to come up with a price for water but it is priceless for life. Human beings have insatiable wants making resources to satisfy them scarce. Water scarcity is a problem that has been affecting many countries including Australia. There are severy economic theories that explain scarcity of fresh water. The first one is human wants theory which argues that human wants are too many making the resources needed for satisfaction inadequate. An economic imbalance results when the market demand is exceeding the supply. Shortage of water is catasrophic for human life. Due to the fact that the resouces to satisfy human wants is inadequate, an economic problem results especially for necessity wants such as fresh water.
There are many causes of shortage of fresh water in Australia. Pollution is the primary cause of scarcity of water. When water bodies such as lakes, seas and oceans are not protected from pollution and home, water is rendered useless as it will be harmful for human consumption. It causes shortage in the economy creating a disequilibrium between supply and demand. Another major cause of water scarcity is wastage of fresh water. Australians have long been taking availabilty of water for granted and the impact has been devastating. Wastage of fresh water in the name of recreation has caused a shortage in the economy of Australia. Overuse of fresh water for irrigation and farming has also affected the supply of fresh water in Australia. It has caused a lot of scarcity which has affected human life
Drought is also a huge contributer for scarcity of fresh water in large parts of Australia. Lack of enough rain has resulted in shortage of water. It is because water bodies such as rivers and lakes have dried up. Lack of storage of rain water is also another reason for scarcity of water. If the government can come up with ways of collecting and storing rain water, the economic problem of scarcity of water will be solved amicably.
Economics have tried to come up with ways of pricing fresh water. They have been left puzzled by the fact that diamonds cost way more than fresh water in the market. Given the importance of water in life, it is safe to say that it should be priceless. The main reason for the low price of water in the economy is the fact that pricing of water was done in a time where water shortage was not a problem. Water processing companies try to cover the cost of processing water and not for producing water. Water pricing is in these times based on delivery of water from the source of water to the final consumer.
Recently the price of fresh water has been rising steadily in the market. It is a result of increase in demand for fresh water as well as decline in the quality of water produced by water companies. Another major reason for the increase in the price of water is the increase in the cost of production. Water companies use modern destillation and desanitation process in producing fresh water. These methods require the use of costly equipments and machines causing an increase in the cost of production. An increase in government tarriffs has also contributed to the shortage of fresh water production in Australia. Water companies suffer major rates of tarriffs with little to no incentives and backing from the government leading to lower levels of production of fresh water.
Water is crucial for life. Human beings and plants depend on water for life survival. Economics have tried to come up with a price for water but it is priceless for life. Human beings have insatiable wants making resources to satisfy them scarce. Water scarcity is a problem that has been affecting many countries including Australia. There are severy economic theories that explain scarcity of fresh water. The first one is human wants theory which argues that human wants are too many making the resources needed for satisfaction inadequate. An economic imbalance results when the market demand is exceeding the supply. Shortage of water is catasrophic for human life. Due to the fact that the resouces to satisfy human wants is inadequate, an economic problem results especially for necessity wants such as fresh water.
There are many causes of shortage of fresh water in Australia. Pollution is the primary cause of scarcity of water. When water bodies such as lakes, seas and oceans are not protected from pollution and home, water is rendered useless as it will be harmful for human consumption. It causes shortage in the economy creating a disequilibrium between supply and demand. Another major cause of water scarcity is wastage of fresh water. Australians have long been taking availabilty of water for granted and the impact has been devastating. Wastage of fresh water in the name of recreation has caused a shortage in the economy of Australia. Overuse of fresh water for irrigation and farming has also affected the supply of fresh water in Australia. It has caused a lot of scarcity which has affected human life
Drought is also a huge contributer for scarcity of fresh water in large parts of Australia. Lack of enough rain has resulted in shortage of water. It is because water bodies such as rivers and lakes have dried up. Lack of storage of rain water is also another reason for scarcity of water. If the government can come up with ways of collecting and storing rain water, the economic problem of scarcity of water will be solved amicably.
Economics have tried to come up with ways of pricing fresh water. They have been left puzzled by the fact that diamonds cost way more than fresh water in the market. Given the importance of water in life, it is safe to say that it should be priceless. The main reason for the low price of water in the economy is the fact that pricing of water was done in a time where water shortage was not a problem. Water processing companies try to cover the cost of processing water and not for producing water. Water pricing is in these times based on delivery of water from the source of water to the final consumer.
Recently the price of fresh water has been rising steadily in the market. It is a result of increase in demand for fresh water as well as decline in the quality of water produced by water companies. Another major reason for the increase in the price of water is the increase in the cost of production. Water companies use modern destillation and desanitation process in producing fresh water. These methods require the use of costly equipments and machines causing an increase in the cost of production. An increase in government tarriffs has also contributed to the shortage of fresh water production in Australia. Water companies suffer major rates of tarriffs with little to no incentives and backing from the government leading to lower levels of production of fresh water.
Market failure is an economic problem that causes an imbalance in a free market or economy. It usually results from disequilibrium between market demand and market supply. The scarcity of fresh water in Australia has caused many problems to its economy. The demand for fresh water is not matched by the low supply of water. Given that water production is controlled by the government, the market has been experiencing failures dur to scarcity of supply. The effects of water scarcity is terrible. Hunger and lack of enough food production is detrimental to the economy. The poverty level is negatively affected due to lack of enough food.
Market failure causes lack of price control. When their is scarcity of economic goods and services, the prices in the market go upwards. It will result in an increament in the inflation rate causing the local currency to lose value. The economy rapidly grows without control which is bad for the development of the country. Another effect of water scarcity is poor educucation. The education sector is negatively affected as students are not able to go to schools due to thirst and need for water.