Professor Hanke began his academic career in water resource economics, the field that served as the focus for his early research and scholarly work. His pioneering work on water pricing, demand, and privatization established him as a leading scholar in the field and led to his appointment to President Reagan's Council of Economic Advisers.
Overview
Professor Hanke began his academic career in 1969 as a water resource economist at the Johns Hopkins University, in the Department of Geography and Environmental Engineering (now the Department of Environmental Health and Engineering) — the premier water resource engineering department in the country. The department was founded by legendary sanitary engineer Abel Wolman. Hanke collaborated extensively with world-renowned sanitary engineer John C. Geyer.
Landmark Work
🏆 Methodological Breakthrough: Professor Hanke conducted the first event study of the impact of water meter installation on water use — a methodological breakthrough that fundamentally changed how utilities assess conservation policy. This work, based on his PhD dissertation, introduced rigorous econometric techniques to a field previously reliant on engineering estimates.
Hanke also developed sewer interceptor design criteria still commonly used today in Europe, demonstrating the practical engineering-economics synthesis that characterized his early career.
Advisory Work
Professor Hanke provided expert economic consulting to leading water utilities and engineering firms worldwide:
Organization | Country | Role |
Compagnie Générale des Eaux (now Veolia Environment) | France | Economic Adviser |
Compagnie Lyonnaise des Eaux | France | Economic Adviser |
Snowy Mountains Engineering Corporation | Australia | Economic Adviser |
Binnie & Partners | United Kingdom (London) | Economic Adviser |
Reagan Administration: Water Portfolio
Steve H. Hanke served as a Senior Economist on President Reagan’s Council of Economic Advisers, where he had the opportunity to put his scholarly work on water into practice. As a member of the White House cabinet councils, he was responsible for the water resources and privatization portfolios. For an overview of his work with President Reagan, see his article “Reflections on Reagan the Intellectual,” published in the August 2007 issue of Globe Asia.
One of Hanke’s early initiatives was advocating the private provision of urban water. Many of the Reagan administration’s initiatives in this sphere were based on his work on French methods for organizing water provision. The initial public announcement of the program was an article Hanke wrote for The Wall Street Journal, which launched a revival of private water provision in the U.S. and elsewhere.
Hanke’s other White House activities in the water field revolved around benefit-cost analysis. His research demonstrated that the “Federal Principles and Standards” used to evaluate water projects were flawed and biased toward overinvestment. Consequently, he represented the White House in efforts to revise these standards. President Reagan also tasked Hanke with reevaluating all water resource projects proposed by the Department of the Interior to ensure they followed normal valuation and budgeting guidelines. All projects required Hanke’s review before approval. On his watch, no projects were approved.
Professor Hanke’s Water Synopsis
For a synopsis of research and contributions in the field of water resources, see Hanke’s Water Synopsis ↓