1X
Two University of Hawaii economists examine how Hawaii manages its most fundamental resource. Roth opens by asking Jim Moncur whether the islands are running out of water; Moncur says the water table on Oahu has declined, suggesting withdrawals exceed recharge. Both guests agree Hawaii's water rates are among the lowest in the United States — lower than the national average, which itself falls below most other countries — and that artificially cheap water undercuts conservation incentives. The sharpest tension is between market logic and Hawaii's current water code. Moncur and Bowen both favor price-based allocation and transferable water rights, but Bowen notes the existing code prohibits permit holders from selling water outright, creating a de facto use-it-or-lose-it system. With Oahu Sugar Company announcing closure, both see a narrow window to reform the code before water scarcity becomes contentious again. Bowen defends golf courses as legitimate agricultural water users and argues tourism and agriculture are more complementary than competitive. Moncur warns that mandatory low-flush retrofits may push small businesses to close rather than conserve. Both close by calling for a revised water code and prices set at true marginal cost.
Transcript
Read or download the full transcript (.txt). Speaker labels were assigned automatically and may contain errors.