Shopping for Water

Another interesting idea is to use a market-based approach for supplying water in California and the West. In May, Michael Krazny interviewed Professor Robert Glennon on Forum (KQED) – Water Expert Calls for Market-Based Solutions to Supply Shortages. Glennon is professor of law and public policy at Rogers College of Law at the University of Arizona, and co-author of the 2014 report "Shopping for Water: How the Market Can Mitigate Water Shortages in the American West."

In “Shopping for Water”, Glennon and his coauthor explore the history of water in the Western United States. Basically, there is not enough water available to honor the water rights currently held (in fact, there never has been). Our whole system for water collection, distribution, and use needs to be overhauled, with consideration for all stakeholders (including the environment, farmers, business, and individuals). They offer some ideas for policy changes.

Glennon feels water is currently too cheap, so there is no market incentive to conserve water, or make wise water use choices. He proposes a more regulated approach, which is more equitable and enables stakeholders to choose how to use their water allocation. For example, a farmer may decide it is more profitable to leave a field fallow for a year, and sell the water he would have used to another stakeholder (under the current practices, you must use the water or lose it). A similar approach was implemented in Australia ten years ago, and has been very successful for handling their ongoing water shortage.

The program highlights the complexity of the water use issue. Glennon is quick to point out that we shouldn’t villainize agriculture and farming – we need them! In fact, a surprising amount of water is used in other sectors. By looking at the problem from a combined regulated and market-based point of view, we would change our priorities, and habits for how we spend out water.