Trade

How Water Prices In China Affect Diesel Prices In The U.S.

In his Bloomberg column today, Peter Orszag connects some interesting dots:

An American trucker barreling down Interstate 95 bemoaning the high price of diesel fuel might never imagine that one of the things driving up his bill is the way water in China is being mispriced. But the truth is, water shortages are indirectly causing increased use of diesel generators for electricity in China, and that, in turn, is helping raise diesel prices in the U.S.

Read the whole thing.

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