Water Markets

Published Wed, May 14 2008 8:03 AM | econbuff

This article in Forbes acknowledges that scarcity of water is leading to water markets, which will lead to more rational use of water.

...scarcity has already spawned informal water markets in parts of Texas and Mexico. The prospect of shortages has attracted a growing number of venture capital firms and investment funds to place big bets on technologies aimed at replenishing water supplies.

...

"Sooner or later, the way in which the world adapts to shortages is with price," says Levinson. "So my expectation is that water is going to become increasingly costly as an input for all kinds of purposes, and when that happens you'll see a lot more interest in conserving water."

 

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