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	<title>Comments on: Want Water? Pay the Price: An Interview With Aguanomics&#8217; David Zetland</title>
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	<link>http://www.businesspundit.com/interview-with-david-zetland/</link>
	<description>Entrepreneurship, Startup Companies and Business Philosophy</description>
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		<title>By: Ron Rivera</title>
		<link>http://www.businesspundit.com/interview-with-david-zetland/comment-page-1/#comment-7678</link>
		<dc:creator>Ron Rivera</dc:creator>
		<pubDate>Thu, 31 Jul 2008 12:42:00 +0000</pubDate>
		<guid isPermaLink="false">http://www.businesspundit.com/interview-with-david-zetland/#comment-7678</guid>
		<description>People will have 100% reliability IF they are willing to pay. If businesses want reliable water, they pay. If poor people want to use water for more than drinking and sanitation, they pay. If a guy wants to irrigate his golf course, he pays A LOT.</description>
		<content:encoded><![CDATA[<p>People will have 100% reliability IF they are willing to pay. If businesses want reliable water, they pay. If poor people want to use water for more than drinking and sanitation, they pay. If a guy wants to irrigate his golf course, he pays A LOT.</p>
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		<title>By: Infogleaner</title>
		<link>http://www.businesspundit.com/interview-with-david-zetland/comment-page-1/#comment-7475</link>
		<dc:creator>Infogleaner</dc:creator>
		<pubDate>Fri, 25 Jul 2008 05:18:30 +0000</pubDate>
		<guid isPermaLink="false">http://www.businesspundit.com/interview-with-david-zetland/#comment-7475</guid>
		<description>In the future you will pay more money for less water, or more money for the same amount of water.

Which would you prefer?

It seems like a no-brainer to me.  Jack up the price of water and use the excess to get more water supplies.

In southern California, we&#039;re right next to a giant ocean full of water.  Spend the money to desalinate.

Don&#039;t like that?  Every river and creek in San Diego County that drains into the ocean is a water waster.  When it rains (and it sometimes does), those little creeks are torrents, pouring fresh water into the ocean.  Why not sequester it?  It&#039;s a lot easier to clean than salt water.

Mega-projects.  Back when our country had the focus to do great things, we made Hoover dam.  Build a water pipeline from the mouth of giant rivers to the north and grab JUST A PORTION of what gets dumped into the ocean.

There&#039;s no end of solutions. Sadly, the only solutions being forwarded are how best to control people&#039;s lives.  Imagine the power of the future water lords, who dictate 2 gallons of water per person per day.  Don&#039;t like it?  Tough!  There&#039;s a fish in the Sacramento delta that&#039;s worth more than you and your families.</description>
		<content:encoded><![CDATA[<p>In the future you will pay more money for less water, or more money for the same amount of water.</p>
<p>Which would you prefer?</p>
<p>It seems like a no-brainer to me.  Jack up the price of water and use the excess to get more water supplies.</p>
<p>In southern California, we&#8217;re right next to a giant ocean full of water.  Spend the money to desalinate.</p>
<p>Don&#8217;t like that?  Every river and creek in San Diego County that drains into the ocean is a water waster.  When it rains (and it sometimes does), those little creeks are torrents, pouring fresh water into the ocean.  Why not sequester it?  It&#8217;s a lot easier to clean than salt water.</p>
<p>Mega-projects.  Back when our country had the focus to do great things, we made Hoover dam.  Build a water pipeline from the mouth of giant rivers to the north and grab JUST A PORTION of what gets dumped into the ocean.</p>
<p>There&#8217;s no end of solutions. Sadly, the only solutions being forwarded are how best to control people&#8217;s lives.  Imagine the power of the future water lords, who dictate 2 gallons of water per person per day.  Don&#8217;t like it?  Tough!  There&#8217;s a fish in the Sacramento delta that&#8217;s worth more than you and your families.</p>
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		<title>By: Robert Barr</title>
		<link>http://www.businesspundit.com/interview-with-david-zetland/comment-page-1/#comment-7463</link>
		<dc:creator>Robert Barr</dc:creator>
		<pubDate>Fri, 25 Jul 2008 01:06:33 +0000</pubDate>
		<guid isPermaLink="false">http://www.businesspundit.com/interview-with-david-zetland/#comment-7463</guid>
		<description>I officially resign from this post. David you are way too smart for me, and anything further from me, will indeed prove my stupidity! Better to keep your mouth shut and be thought of as a fool, than to open it and remove all doubt. Although, I am afraid that that moment in time for me may have past!</description>
		<content:encoded><![CDATA[<p>I officially resign from this post. David you are way too smart for me, and anything further from me, will indeed prove my stupidity! Better to keep your mouth shut and be thought of as a fool, than to open it and remove all doubt. Although, I am afraid that that moment in time for me may have past!</p>
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		<title>By: David Zetland</title>
		<link>http://www.businesspundit.com/interview-with-david-zetland/comment-page-1/#comment-7460</link>
		<dc:creator>David Zetland</dc:creator>
		<pubDate>Thu, 24 Jul 2008 23:21:11 +0000</pubDate>
		<guid isPermaLink="false">http://www.businesspundit.com/interview-with-david-zetland/#comment-7460</guid>
		<description>@Stalky -- (1) you need to study up on population dynamics. Start here: http://en.wikipedia.org/wiki/World_population. You will not that the growth rate is not exponential but logarithmic, which is another way of saying that it&#039;s going to peak.
(2) Resources do NOT run out if their price rises with scarcity. My point about water pricing is that we need to raise prices if we want people to use less and/or stay within a sustainable consumption. 
(3) Although water is (nominally) a renewable resource, even non-renewables (oil) will be around in 1,000 years if the price rises fast enough. Physical quantities do not matter if institutions are right/wrong.</description>
		<content:encoded><![CDATA[<p>@Stalky &#8212; (1) you need to study up on population dynamics. Start here: <a href="http://en.wikipedia.org/wiki/World_population" rel="nofollow">http://en.wikipedia.org/wiki/World_population</a>. You will not that the growth rate is not exponential but logarithmic, which is another way of saying that it&#8217;s going to peak.<br />
(2) Resources do NOT run out if their price rises with scarcity. My point about water pricing is that we need to raise prices if we want people to use less and/or stay within a sustainable consumption.<br />
(3) Although water is (nominally) a renewable resource, even non-renewables (oil) will be around in 1,000 years if the price rises fast enough. Physical quantities do not matter if institutions are right/wrong.</p>
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		<title>By: Robert Barr</title>
		<link>http://www.businesspundit.com/interview-with-david-zetland/comment-page-1/#comment-7451</link>
		<dc:creator>Robert Barr</dc:creator>
		<pubDate>Thu, 24 Jul 2008 18:30:26 +0000</pubDate>
		<guid isPermaLink="false">http://www.businesspundit.com/interview-with-david-zetland/#comment-7451</guid>
		<description>TokyoTom-

Sorry if the line offends you...my apologies, I use it in a bombastic way to reference someone that talks....a lot...like myself, so no harm intended. I would like to address your comment however if I could. You said &quot;I happen to live in Japan, which has almost no natural resources but a wealthy economy.&quot; Can I mention Tom, that you are surrounded by water? Not only that, but Japan is building the world&#039;s largest desalinization plant ever! So when you say resource poor, I can&#039;t exactly agree when it comes to well...water. I also assume you are going to drink this water, considering there isn&#039;t much farmland to speak of, so that is how Japan is going to address their water needs going forward.

I also think water IS priced closely to the marginal costs of acquisition. That&#039;s not the issue, it&#039;s getting water to places that people need it because it is not produced locally, right? I mean in some respect, it&#039;s no different than producing food or clothes, if it is labeled &quot;not made here&quot; its gotta come from somewhere.

In other words, I have no trouble getting water locally in Philadelphia, nor do you have real issues getting it in Japan, getting it in Las Vegas, India, the Middle East, and Africa is a real issue that needs to be addressed. Problem is, we are not making more of this stuff, and it is going to take a back seat in people&#039;s consciousness as long as the U.S. is struggling with a tanking economy, $5 a gallon gas, a housing market that has collapsed, and a financial sector that is reminiscent of the Japanese banking sector of the 80&#039;s.  

Guys like David need to talk a lot, in fact they need to talk a lot more. Why? Because small changes creates big ones. Like the butterfly whose flight stirs up the winds that create a hurricane 2000 miles away, it takes small steps first.

I ripped into the story because of my ignorance to the issue in that it isn&#039;t anywhere close on my radar screen. I have much bigger things to worry about that are real, right now, looking me right in the eye. Am I right? Of course not, but you can only fix one worldwide crisis at a time.</description>
		<content:encoded><![CDATA[<p>TokyoTom-</p>
<p>Sorry if the line offends you&#8230;my apologies, I use it in a bombastic way to reference someone that talks&#8230;.a lot&#8230;like myself, so no harm intended. I would like to address your comment however if I could. You said &#8220;I happen to live in Japan, which has almost no natural resources but a wealthy economy.&#8221; Can I mention Tom, that you are surrounded by water? Not only that, but Japan is building the world&#8217;s largest desalinization plant ever! So when you say resource poor, I can&#8217;t exactly agree when it comes to well&#8230;water. I also assume you are going to drink this water, considering there isn&#8217;t much farmland to speak of, so that is how Japan is going to address their water needs going forward.</p>
<p>I also think water IS priced closely to the marginal costs of acquisition. That&#8217;s not the issue, it&#8217;s getting water to places that people need it because it is not produced locally, right? I mean in some respect, it&#8217;s no different than producing food or clothes, if it is labeled &#8220;not made here&#8221; its gotta come from somewhere.</p>
<p>In other words, I have no trouble getting water locally in Philadelphia, nor do you have real issues getting it in Japan, getting it in Las Vegas, India, the Middle East, and Africa is a real issue that needs to be addressed. Problem is, we are not making more of this stuff, and it is going to take a back seat in people&#8217;s consciousness as long as the U.S. is struggling with a tanking economy, $5 a gallon gas, a housing market that has collapsed, and a financial sector that is reminiscent of the Japanese banking sector of the 80&#8217;s.  </p>
<p>Guys like David need to talk a lot, in fact they need to talk a lot more. Why? Because small changes creates big ones. Like the butterfly whose flight stirs up the winds that create a hurricane 2000 miles away, it takes small steps first.</p>
<p>I ripped into the story because of my ignorance to the issue in that it isn&#8217;t anywhere close on my radar screen. I have much bigger things to worry about that are real, right now, looking me right in the eye. Am I right? Of course not, but you can only fix one worldwide crisis at a time.</p>
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		<title>By: Stalky</title>
		<link>http://www.businesspundit.com/interview-with-david-zetland/comment-page-1/#comment-7448</link>
		<dc:creator>Stalky</dc:creator>
		<pubDate>Thu, 24 Jul 2008 17:02:27 +0000</pubDate>
		<guid isPermaLink="false">http://www.businesspundit.com/interview-with-david-zetland/#comment-7448</guid>
		<description>&quot;How Did This Happen?&quot;

It is very simple: 1-2% population growth, every year, year after year, has caused the human population of the planet to skyrocket from 600m in 1700 to 6.7b only 308 years later.

There is *no way* to secure a &quot;sustainable&quot; water supply (or any other type of resource) for a population that is growing exponentially without limit.</description>
		<content:encoded><![CDATA[<p>&#8220;How Did This Happen?&#8221;</p>
<p>It is very simple: 1-2% population growth, every year, year after year, has caused the human population of the planet to skyrocket from 600m in 1700 to 6.7b only 308 years later.</p>
<p>There is *no way* to secure a &#8220;sustainable&#8221; water supply (or any other type of resource) for a population that is growing exponentially without limit.</p>
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		<title>By: Philip</title>
		<link>http://www.businesspundit.com/interview-with-david-zetland/comment-page-1/#comment-7444</link>
		<dc:creator>Philip</dc:creator>
		<pubDate>Thu, 24 Jul 2008 15:22:32 +0000</pubDate>
		<guid isPermaLink="false">http://www.businesspundit.com/interview-with-david-zetland/#comment-7444</guid>
		<description>Hear, hear Tokyo Tom!</description>
		<content:encoded><![CDATA[<p>Hear, hear Tokyo Tom!</p>
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		<title>By: TokyoTom</title>
		<link>http://www.businesspundit.com/interview-with-david-zetland/comment-page-1/#comment-7434</link>
		<dc:creator>TokyoTom</dc:creator>
		<pubDate>Thu, 24 Jul 2008 07:12:28 +0000</pubDate>
		<guid isPermaLink="false">http://www.businesspundit.com/interview-with-david-zetland/#comment-7434</guid>
		<description>Bob, first, nice &quot;verbal masturbation&quot; quip.  You might be projecting, but you certainly aren&#039;t walking your own blog&#039;s talk on netiquette.

&quot;I think trying to live in place that provides none of THE key element of life is silly and to force that issue on good ol’ Mother Nature….well, you deserve what you get!&quot;

I happen to live in Japan, which has almost no natural resources but a wealthy economy.  Why?  Because they use markets to buy what they need from others who want to sell and to produce sophisticated products that others want to buy.  David is obviously correct that the real problem with water in the US is that there are only rudimentary markets in it, and that we can improve our living standards and cut down on political disputes over resources like water by (1) clarifying property rights, (2) allowing those who own water rights to sell them to people who value them more than they do, and (3) getting the goverment out of the water infrastructure and disrtibution businesses - or at least to price water more closely to the marginal costs of acquisition.</description>
		<content:encoded><![CDATA[<p>Bob, first, nice &#8220;verbal masturbation&#8221; quip.  You might be projecting, but you certainly aren&#8217;t walking your own blog&#8217;s talk on netiquette.</p>
<p>&#8220;I think trying to live in place that provides none of THE key element of life is silly and to force that issue on good ol’ Mother Nature….well, you deserve what you get!&#8221;</p>
<p>I happen to live in Japan, which has almost no natural resources but a wealthy economy.  Why?  Because they use markets to buy what they need from others who want to sell and to produce sophisticated products that others want to buy.  David is obviously correct that the real problem with water in the US is that there are only rudimentary markets in it, and that we can improve our living standards and cut down on political disputes over resources like water by (1) clarifying property rights, (2) allowing those who own water rights to sell them to people who value them more than they do, and (3) getting the goverment out of the water infrastructure and disrtibution businesses &#8211; or at least to price water more closely to the marginal costs of acquisition.</p>
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		<title>By: Robert Barr</title>
		<link>http://www.businesspundit.com/interview-with-david-zetland/comment-page-1/#comment-7417</link>
		<dc:creator>Robert Barr</dc:creator>
		<pubDate>Wed, 23 Jul 2008 21:21:45 +0000</pubDate>
		<guid isPermaLink="false">http://www.businesspundit.com/interview-with-david-zetland/#comment-7417</guid>
		<description>David,

Don&#039;t disagree with you on the mismanagement issue. I think trying to live in place that provides none of THE key element of life is silly and to force that issue on good ol&#039; Mother Nature....well, you deserve what you get! As far as the econ stuff, I&#039;m a dumb marketing guy os I leave that to the people that got all the gray matter. 

It&#039;s all about education...and pain threshold. Meaning, as long as I walk into my kitchen and water comes out, I am good. But let there be a day that I turn on the faucet and nothing happens, all of a sudden water is a big deal. 

I read in an interview with Indra Nooyi, CEO of Pepsi, that she felt guilty every time she ran a bath, considering her and her brothers had to walk six miles each day as children to bring water home. Let that happen here and I am falling on the ground crying while I slowly turn into jerky.

Nice story, both of you!

Robert</description>
		<content:encoded><![CDATA[<p>David,</p>
<p>Don&#8217;t disagree with you on the mismanagement issue. I think trying to live in place that provides none of THE key element of life is silly and to force that issue on good ol&#8217; Mother Nature&#8230;.well, you deserve what you get! As far as the econ stuff, I&#8217;m a dumb marketing guy os I leave that to the people that got all the gray matter. </p>
<p>It&#8217;s all about education&#8230;and pain threshold. Meaning, as long as I walk into my kitchen and water comes out, I am good. But let there be a day that I turn on the faucet and nothing happens, all of a sudden water is a big deal. </p>
<p>I read in an interview with Indra Nooyi, CEO of Pepsi, that she felt guilty every time she ran a bath, considering her and her brothers had to walk six miles each day as children to bring water home. Let that happen here and I am falling on the ground crying while I slowly turn into jerky.</p>
<p>Nice story, both of you!</p>
<p>Robert</p>
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		<title>By: Philip</title>
		<link>http://www.businesspundit.com/interview-with-david-zetland/comment-page-1/#comment-7416</link>
		<dc:creator>Philip</dc:creator>
		<pubDate>Wed, 23 Jul 2008 21:10:20 +0000</pubDate>
		<guid isPermaLink="false">http://www.businesspundit.com/interview-with-david-zetland/#comment-7416</guid>
		<description>I am with you entirely in agreeing that markets are the fairest and most efficient way to allocate water. There certainly is an arbitrage opportunity for agricultural water districts to sell water to urban users, and some do, although there are still primitive cultural resistances, and several real legal issues interfering with the process (to say nothing of the infrastructure needed, which could be paid for in the market but has yet to be built). I mentioned sewage because most urban water utilities recover their sewage costs through the water use fee (part of the $1,000 annual bill).
 Urban users don&#039;t have an appetite for anything like all of agriculture&#039;s water, anyway. I recon at the most something like 5 million acre feet per year would satiate the demand, and, if the price farmers received was sufficient to pay for improved infrastructure, there would be little disruption to rural employment, property taxes, etc. in the selling areas. Obviously there would be a net economic gain to society, as in all market clearing transactions.
At some point, we do need to consider that if we really reduce agricultural output, the stuff grown in California would have to be grown elsewhere, at God know what environmental and human cost. I think we can have functioning markets and retain most of our agricultural output, but only if we are careful, and respectful of each other. The Dismal Science can scare the pants off some old farmers, and needs to be fed to them slowly so they can understand the benefits.</description>
		<content:encoded><![CDATA[<p>I am with you entirely in agreeing that markets are the fairest and most efficient way to allocate water. There certainly is an arbitrage opportunity for agricultural water districts to sell water to urban users, and some do, although there are still primitive cultural resistances, and several real legal issues interfering with the process (to say nothing of the infrastructure needed, which could be paid for in the market but has yet to be built). I mentioned sewage because most urban water utilities recover their sewage costs through the water use fee (part of the $1,000 annual bill).<br />
 Urban users don&#8217;t have an appetite for anything like all of agriculture&#8217;s water, anyway. I recon at the most something like 5 million acre feet per year would satiate the demand, and, if the price farmers received was sufficient to pay for improved infrastructure, there would be little disruption to rural employment, property taxes, etc. in the selling areas. Obviously there would be a net economic gain to society, as in all market clearing transactions.<br />
At some point, we do need to consider that if we really reduce agricultural output, the stuff grown in California would have to be grown elsewhere, at God know what environmental and human cost. I think we can have functioning markets and retain most of our agricultural output, but only if we are careful, and respectful of each other. The Dismal Science can scare the pants off some old farmers, and needs to be fed to them slowly so they can understand the benefits.</p>
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