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The best way to induce conservation of something is to raise it's price. If the price is artificially low, than the existence of a "Market Price" for water will
by jivatmanx 14y ago
The best way to induce conservation of something is to raise it's price. If the price is artificially low, than the existence of a "Market Price" for water will raise it, and result in conservation and the development of more water-efficient technology.
- _delirium 14y agoI do generally agree that the price of water should go up, and that can be done in part by reducing the special subsidies currently given to agriculture (e.g. in California, farmers pay much less than anyone else, and generally less than the cost of even maintaining the state-owned aqueducts). But that's a different question from whether thoroughly securitizing water and trading it on futures exchanges would improve the situation. We could at least try the less radical change of "reduce the massive subsidies" first and see how large water users respond to a ramp-up in prices.
- glesica 14y agoI agree entirely. As long as we are still subsidizing something, removing subsidies should be the first thing we try when we decide to liberalize. Oil is a good example. Its production is subsidized and its consumption is taxed.
- glesica 14y agoUntil industries lobby government for subsidies, either individual or for the entire commodity (look at corn) so they can buy water at the "market" price and sell the resulting products below what should have been the market price.