Reducing the costs of ...

Reducing the costs of seawater desalination through innovation would be the biggest game-changer in solving the world's water crisis.  Seawater desalination is the best way to produce large volumes of water to serve a growing world population.  (see chart below)  Desalination is being restrained by politically-driven low water prices, below the cost of desalination.  The market failure is that water is priced at unsustainably low levels, so the market's hands are tied:  water prices are regulated, not set by the market, and is no market signal to users that water is valuable.   Utilities generally price at the treatment and delivery cost only, not the replacement cost of the water.  The water itself is instead considered to be "free".  The aquifers that are being depleted around the world are masking the true cost of water, which is the cost to replace it so the water supply is sustainable.  When the wells go dry it will be because the low prices maintained by governments didn't signal users that they are running out of water.  Raising water prices to replacement cost will vastly increase the use of seawater desalination. Greater desal use in turn will drive down costs through increased development of innovative desalination techniques, which will be the real game changer.