California's drought has reached Biblical-plague proportions. It's time for a drastic measure. - The Week

California's drought has reached Biblical-plague proportions. It's time for a drastic measure. - The Week: "The solution to rectifying California's abysmal water conservation record might be found in California's agricultural sector. In just the past year, prices for irrigation water have risen from ten to almost 40 times last year's price. Those who have the water to spare can make a sizable profit by selling it to those who need it. Thus, because the value of water has significantly increased, every gallon is a precious commodity that is not wasted.

Allowing price to ration water may be a bitter political pill to swallow, but it makes economic and environmental sense. There are examples of this economic solution working in the past. Cities like Santa Fe, Tucson, and Fort Worth allowed price signals to govern water use — the more a household used, the more expensive water was to purchase. Consumers responded by conserving water. These measures worked so well utilities were forced to stabilize the sharp drop in revenue by reconfiguring rates. That is not a bad thing — especially during a drought as austere as California's.

But won't raising prices only hurt the poor and have little effect on those who have the money to afford it anyways?"



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