The top discussion – Is it the economic issue or the weather problems that have brought the drought in the West?
According to a new report about the Hamilton Project at Brookings Institution, an argument has been made among the team of the lawyers and the professors about the water issues in the West. They argued that the water issue can be solved by the economic policies by promoting the water trading among the states.
According to the professors in the Wall Street Journal, “If there have been the approaches to trade the water, then a few farmers might cut back on the making of the lower value, water intensive crops and rent or sell the preserved water in order to desperate nut growers and fruit or the thirsty cities”.
First of all, the shrewd water policy ought to permit someone who wants water in order to pay some other person to forgo her utilization of the water or maybe to invest in the water conservation. An in return, to get the access to saved water. In the second step, local governments and the state ought to help these dealings by setting up the necessary market institutions like the water banks that can act as the brokers, facilitators and the clearinghouses – Brookings paper.
Unfortunately, to the functional water market in U.S, there are many obstacles.
The type of market trading could be discouraged by the way that the local, state & federal government allot the water. According to the paper, the existing system is caught up in the inefficiencies.
According to the Robert Glennon (who is a law professor), “to price the water sproperly and to promote the conservation, we should use the price signals”. Well, the existing system is a “government bureaucracy” that offers the most influential interest all water they need for the low cost.