Thirsty world needs higher water prices: OECD

Governments must put a higher price on water to help tackle growing shortages in a world threatened by climate change, the head of the OECD said on Monday.

Higher prices would encourage investment in technology and infrastructure and discourage people from wasting water, Angel Gurria, secretary general of the Organization for Economic Co-operation and Development told the OECD forum in Paris.

"Water is generally underpriced and sometimes practically given away as a free good and that leads to waste. Yes it's a right, but that doesn't mean it has to be free... because it's scarce," Gurria said.

"Pricing water so that there is capacity for reinvestment, making consumers of the water pay for the cost of water supplies is an effective public policy instrument to encourage responsible use."

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