Sustainability needs good economics

Abstract

1. Key economics ideas • Economics - how we make choices over scarce items • People respond to incentives in making choices • Scarce items have alternative uses • If we choose one use of a resource we forgo the benefit from other uses of the resource. • Benefit foregone = Opportunity Cost. 2. Water in New Zealand • Large amounts of water but not always in the right place at the right time in the right amount • Water quality is degraded in many urban waterways, lowland rivers and streams, lakes. • Public concern about water availability and quality • New policies and tools needed.