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This doesn't have to mean an across-the-board increase in food prices, though. Prices that consumers pay for goods should reflect the cost of the resources cons
by ameliaquining 9y ago
This doesn't have to mean an across-the-board increase in food prices, though. Prices that consumers pay for goods should reflect the cost of the resources consumed in their production. If almonds in particular become more expensive at the grocery store (it takes a gallon of water to grow one almond), and this causes people to buy fewer almonds relative to other foods, and water is conserved as a result, then this seems like the right outcome. (If we did see an across-the-board increase in food prices, that could be fixed with government subsidies, if that were necessary to prevent the change from being a regressive tax.)