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SNS Research Brief | To be published 11/11/26, 6:30 AM

SNS Research Brief 120. The Right Price for Water: How Pricing Can Promote More Efficient Water Use and Better Crisis Preparedness

Mikael Elinder

Recurring droughts, falling groundwater levels and an ageing pipe network are putting pressure on Sweden’s water supply. Yet when water becomes scarce, the price stays the same. 

The summer of 2018 was difficult in many parts of the country, and this year too the authorities have warned of low groundwater levels in 11 counties. Today, shortages are mainly dealt with through appeals for restraint and bans on watering. Such measures are blunt and affect everyone equally, regardless of how much they benefit from the water. In most other sectors, the price does this job, but in the water sector it does not work that way. 

A new SNS report by Mikael Elinder analyses how water is priced in Sweden today, why the current system is problematic and what reforms are needed. It will be published on 11 November as part of the research project SNS Infra. 

About the author 

Mikael Elinder is Professor of Economics at Uppsala University. His research spans several fields of economics, including public economics, behavioural economics, environmental economics, health economics and political economy. 

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      Mikael Elinder

      mikael.elinder@nek.uu.se

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