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The Irish Government is considering the introduction of water charges for households - Leaving Cert Economics - Question 9 - 2020
Question 9
The Irish Government is considering the introduction of water charges for households. Outline three possible economic arguments in favour of the introduction of wate... show full transcript
Worked Solution & Example Answer:The Irish Government is considering the introduction of water charges for households - Leaving Cert Economics - Question 9 - 2020
Step 1
Reduce consumption of water / discourage waste.
Answer
Implementing water charges will encourage households to conserve water, as individuals are more likely to use resources efficiently when they incur costs. This behavior change can lead to a substantial decrease in water wastage across communities.
Step 2
Generate revenue for the service provider / broaden the tax base.
Answer
Charging for water services will generate revenue that can be utilized to enhance water infrastructure and services. This revenue is crucial for maintaining and improving the quality of water supply and ensuring that the systems in place are sustainable long-term.
Step 3
Improve quality of water supply / distribution of water.
Answer
The income generated from water charges can be reinvested in better water distribution systems. This ensures that households receive higher quality water and that resources are allocated efficiently, ultimately benefiting community health and wellbeing.