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Indirect effects on the economy

The resource water is often used inefficiently, which, as outlined above, constitutes a loss to society. Progressive water pricing policy however leads to the best allocation of the existing supply-volume. Thus it assures the best possible social welfare. Economical water users have to make sure they do not waste any water or create more than minimal pollution, as they would otherwise face high costs. Thus for example factories and irrigators have to find ways to modernise their equipment. Innovation in the branches making the necessary technology available will be a consequence and will involve the creation of new jobs if such technologies ar not only imported.

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