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S6E28 - Water Subsidies: a False Good Idea

S6E28 - Water Subsidies: a False Good Idea

From(don't) Waste Water! | Water Tech to Solve the World


S6E28 - Water Subsidies: a False Good Idea

From(don't) Waste Water! | Water Tech to Solve the World

ratings:
Length:
1 minute
Released:
Aug 28, 2022
Format:
Podcast episode

Description

Subsidies are dangerous to water!

We almost never pay utility water at its real cost, and even less so in the poorest countries, where 89% of utilities don't recover their costs. 

So how do these utilities reach breakeven? Well, with subsidies.

The problem is that these subsidies are very unevenly distributed. 

Of the about 450 billion dollars given out annually, 26% go to the wealthiest 20% and only 6% to the poorest 20%. Said differently, the richer you are, the more public money you'll get.

And those water subsidies are a different burden, depending on the country's prosperity. For rich countries, it represents 0.06% of their GDP, while for low-income ones, it hovers around 2%.

When something becomes that expensive, you start looking for ways to discreetly cut costs: that's how wastewater treatment always gets underfunded.
 
The thing is that if utilities can't reach full cost recovery, their service quality will lower.

And don't worry, the richest will always be able to afford to switch to point-of-use treatments or bottled water. 

But the poorest will suffer even more...

See: subsidies are dangerous to water!  

Wanna dive deeper into the topic? Check out my conversation with David Lloyd Owen about the best and worst ways to achieve SDG 6 

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Released:
Aug 28, 2022
Format:
Podcast episode

Titles in the series (100)

❓ Ever wondered how the #WaterIndustry was reacting to our World's Water Challenges? Water Scarcity? #SDG6? Emerging contaminants? Climate Change? Circular Economy? Digitization and Smart Water? ? Get the Water Market pulse, for free. In one hour per week, while you do the dishes! ? Get inspired by incredible guests, Water Entrepreneurs, Thought Leaders, Book Authors, Scientists, and Investors ➡️ Leverage their insights, advice & experience and ensure to stay on top of best practices ?️ Tune in every Wednesday, (don't miss out! ?) ? Find all the detailed episode notes, interviews, infographics, and more on http://dww.show