4 - Where Should Water Come From?

Summary

This chapter looks at the provision of water by two different Southern California water agencies. One jurisdiction seeks to meet its water needs by financing and buying water from an expensive, energy-intensive desalination plant; the other jurisdiction successfully persuades its residents to reduce and change their consumption patterns of water and saves a huge amount of money as compared to the agency that bought into the desalination plant. What’s interesting from our book’s critical point of view is that the water agencies had different ideas about how people behave as water consumers. The jurisdiction that bought the expensive and wasteful desalination plant spent far more money and ended up wasting a huge amount of water because they didn’t even entertain the idea that people’s water consumption habits could change. Like good neoliberals they assumed that people were selfish, that they are attempting to maximize their individual utility, and that they had relatively stable preferences, which it would be foolish to attempt to change substantially. They paid dearly for those assumptions. In addition, the case demonstrates, how even in relation to complex problems such as handling water supplies, conscious human prediction and problem-solving can outperform market-based mechanisms. The case shows, in opposition to neoliberal orthodoxy, that it is possible to plan.