While the concept of water markets appears promising, Chile, Australia, the United States, and other countries’ experiences show that implementation can prove challenging. A balanced, carefully regulated approach that accounts for the inevitable ethical and environmental pitfalls is crucial, Eduardo Araral writes on Project Syndicate.
Water markets have been heralded for their ability to allocate water more efficiently. When individuals or organizations are allowed to trade water rights, water is allocated to those who value it most. But water is not just an economic commodity; it is a basic human right. A system that allows the wealthiest to buy up the most water risks undermining access for those who need it most.
The promise of water markets lies in their potential to address scarcity by incentivizing conservation and efficiency. But the risks they pose, especially to equity and environmental sustainability, cannot be ignored.
The full article by Eduardo Araral on Project Syndicate
See also our list of academic articles on the financialisation of water
