One of my favorite environmental institutes, PERC—the Property and Environment Research Center, asked me recently to write about market-based principles for water. Given the past year’s media frenzy on water trading rampant with misconceptions (including about the Nasdaq Veles California Water Water Futures), I wanted to set the record straight. So I wrote about what water markets are and what they are not.
The article also covers topics important to the industry:
- How water markets help farmers cope with supply shocks, such as drought and climate change;
- Where improvements could be made to make water trading more effective, affordable, and accessible;
- How water markets are being used to improve habitat conditions — including by some of my favorite environmental organizations, such as the Arizona Land and Water Trust and Trout Unlimited, to improve habitat conditions.
I also did something risky: I shared — in writing — the embarrassing story of my first-ever water trade. I’m happy to report that I’ve learned a lot since.
Read the full article here.