Social Goods: Questions of Fairness

Water is also a social good, t. е. Social factors play a role in distribution decisions. Many countries follow (for example) the two-tiered approach, which means that everyone needs at least 20 liters of water a day; and this amount is supplied for free. If you consume more, you have to pay; and through cross-subsidization, the great consumers pay for the poor. The difference between technical and allocative efficiency.

There are two basic concepts of efficiency used in economic theory: technical and allocative efficiency. Together, the two are known as economic efficiency. Technical efficiency traditionally associated with production and refers to firms getting the maximum output per unit contribution, or using the minimum input for a given target output. Assuming that in a given technology, one firm is more efficient than another if it is able to produce more output, with the same number of inputs, or uses less cost for a given production.

The concept, however, can also be applied to consumers if we define an “exit” for the coming from entering use. Consumers who are more “efficient” will be those who receive more, utility from the same input, or use fewer inputs to achieve the target level of utility. When we speak about achieving water justice, we mean primarily the situation of vulnerable groups of society, who are excluded from access to basic goods and services, in this case water.

The problem is particularly acute when the poorest groups pay more per unit of water. Than all other social groups, which is the situation. We see in the cities with partial, coverage of drinking water. The situation of women and children is often very acute. It is difficult for them to get access to safe water, or it will require a lot of effort in money and time.