Water is an essential resource. For that reason moral considerations exert considerable pressure to.

Water is an essential resource. For that reason moral
considerations exert considerable pressure to assure that everyone has access
to at least enough water to survive. Yet it appears that equity and efficiency
considerations may conflict. Providing water at zero cost is unlikely to support
efficient use (marginal cost is too low), while charging everyone the market
price (especially as scarcity sets in) may result in some poor households not
being able to afford the water they need. Discuss how block rate pricing
attempts to provide some resolution to this dilemma. How would it work?