With dam levels hitting 46 per cent on Sunday, the NSW government has announced level two water restrictions will be enforced from December 10.

Michael is joined by Professor Quentin Grafton, Professor of Economics ANU & UNESCO chair in water economics, whose studies have found higher water prices encourage conservation… and restrictions during the Millennium Drought cost the public about $3 billion in net costs and were inefficient.

Professor Grafton says water prices should rise & fall along with dam levels. “This dynamic price premium promotes water conservation and allows water in dams to last longer than otherwise.”

“Increasing prices in times of drought and reducing them later meant the average person paid less over time,” he said.

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