There has been a lot of news of the drought inwards California too the novel regulations that the state is putting inwards place. But at that spot has been picayune elevate of the obvious (to an economist) solution: Raise the cost of water.
This would produce to a greater extent than than whatsoever fix of regulations e'er could. For example, the governor is non going to forcefulness people to supersede their onetime toilets alongside newer, to a greater extent than water-efficient ones. But a higher cost of H2O would encourage people to produce that. Influenza A virus subtype H5N1 higher cost would every bit good laissez passer on farmers the correct incentive to grow the most water-efficient crops. It would own entrepreneurs to come upwardly up alongside novel water-saving technologies. And too thus on.
Some may worry most the distributional effects of a higher cost of a necessity. But the revenue from a higher cost could hold upwardly rebated to consumers on a lump-sum basis, making the whole organization progressive. We would terminate upwardly alongside to a greater extent than efficiency too to a greater extent than equality. Sumber https://gregmankiw.blogspot.com/
This would produce to a greater extent than than whatsoever fix of regulations e'er could. For example, the governor is non going to forcefulness people to supersede their onetime toilets alongside newer, to a greater extent than water-efficient ones. But a higher cost of H2O would encourage people to produce that. Influenza A virus subtype H5N1 higher cost would every bit good laissez passer on farmers the correct incentive to grow the most water-efficient crops. It would own entrepreneurs to come upwardly up alongside novel water-saving technologies. And too thus on.
Some may worry most the distributional effects of a higher cost of a necessity. But the revenue from a higher cost could hold upwardly rebated to consumers on a lump-sum basis, making the whole organization progressive. We would terminate upwardly alongside to a greater extent than efficiency too to a greater extent than equality. Sumber https://gregmankiw.blogspot.com/
