Question

Canadian Water Policy:

a) Why are Canada's water prices low in comparison to other countries?

b) Is Canada's technology of water supply the same across developed countries? Why or why not?

c) How are Canada's water prices determined?

Answer 1

a) Why are Canada's water prices low in comparison to other countries?

Demand for water in Canada is relatively low, thus costs less to buy water in Canada. Further, low capital cost in Canada also keeps price of water low.

b) Is Canada's technology of water supply the same across developed countries? Why or why not?

Canadian topography is not similar across the country. Hence, same technology is not used to supply water throughout the country. in urban area, water is supplied through the pipes and in few regions, water wells are used to meet the needs of water. In far north, water is supplied through the truck as it is difficult to construct well in these regions.

c) How are Canada's water prices determined?

Market force is not used to decide the price of water. Cost of licenses and transportation costs are accounted for while deciding prices. Municipalities in different regions decide the price of water.