Clear as mud?

Abstract

New Zealand’s freshwater resources are under pressure like never before. Public disputes over damming rivers for irrigation, the contamination of water supplies in Havelock North in 2015, and the media drumbeat on the deterioration of water quality and swimmable rivers all put the matter firmly on the political agenda during last election. Competition for water in some catchments and uncertainty about society’s preferences about how water should be used creates conflicts and impedes resolution. What can economics tell us about how communities value water? What can economists do to help and inform those who have to make the hard decisions?