The United Nations Intergovernmental Panel On Climate Change has noted that there are numerous policy options that “would generate net social benefits regardless of whether there was a climate change.” Examples of such “no regrets” policies would include the elimination of irrigation and development subsidies that artificially increase water demand, as well as the incorporation of environmental values into existing water institutions.Bottom Line: Read this paper.
This article suggests that the gradual implementation of water markets is also such a “no regrets” policy. Many aspects of water markets, including their flexibility, decentralized nature, and ability to create and harness economic incentives, make them particularly well suited to address the uncertain water forecast. A gradual shift toward water marketing and market pricing will improve the management of water supplies, ensure more efficient allocation of available water supplies and encourage cost effective conservation measures.
20 Aug 2008
Jonathan H. Adler, a law professor, writes of "Water Marketing as an Adaptive Response to the Threat of Climate Change," and this excerpt captures his argument: