On November 28, Instituto Escolhas launched, with the support of iCS and developed by PSR Consultoria e Soluções em Energia, the study “The Electric Sector: how to price water in a scenario of shortage,” which maps the main bottlenecks in the management of the pricing of water resources due to the current demand by the water-energy-food nexus. Basically, it concerns the challenge of offering an economic sign to water as an input, with respect to the anticipation of the crisis caused by shortages or dispute. In the last 30 years, moreover, the use of water for irrigation in agriculture has risen by around 600%.
Here are some highlights from the launch event at the Folha de S. Paulo auditorium:
“The use of a common resource, such as water, means having to have the State present to make the regulations. When dealing with allocating scarce common resources, as is the case, if the regulatory agencies relinquish their skills, barbarism will prevail.” Dilma Pena, ex-president of Sabesp and ex-director of the National Water Agency (ANA).
“The notion that the country is abundant in water is one of the most dangerous myths. We do not have an abundance of water, and this wrong notion of society is eroded by a poor or non-existent management of water resources.” Sergio Leitão, director of Instituto Escolhas.
“Our results show that the water is very far from being an infinite resource. We have begun to realize the importance of hydric stress.” Rafael Kelman, one of the authors of the research.
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