I think we need a discussion thread for the californian drought going on. I would like to compile information in the main post and would like help compiling it. If we really are proud to be effective altruists then this is an area we should really figure out.
- http://ca.gov/drought/
- http://cdec.water.ca.gov/cdecapp/resapp/getResGraphsMain.action
- http://www.californiadrought.org/
- http://pacinst.org/wp-content/uploads/sites/21/2015/04/CA-Ag-Water-Use.pdf
- http://www.californiadrought.org/the-state-of-the-california-drought-still-very-bad/
- Read this: http://pacinst.org/wp-content/uploads/sites/21/2013/02/ca_drought_impacts_full_report3.pdf
Any one have any good ideas on how we can help?
High prices do two different kinds of parallel rationing. They ration the good to its higher marginal utility uses: people who need it more will be willing to sacrifice more for it. This is a good thing. They also ration the good away from the poor and towards the rich. This is not really a good thing.
How could, in general, one have the first but not the second? Ration a thing to high marginal utility uses, but ability to afford, income, social class should not play much a role?
My attempt: let the price go high, because it incentivizes production. But also subsidize a certain quota of it per person, roughly as much as the highest marginal utility use is (drink, one quick shower etc. calculate it). Make the quota sellable, transferable, because people will do it anyway on the black market.
I would expect the second effect to be small in practice with respect to water because of the small quantities involved. My demand for water for drinking and cleaning is inelastic within the relevant margins, and even large changes in the price of tap water would have minimal costs to me. My use of water for lawns would be more price sensitive, so green lawns in California would become more of a luxury good, and I am with James_Miller in seeing that as a good thing in the American Southwest. As you suggest, some sort of price tiering or progressiveness in ... (read more)