A Pacific Research Institute Report, "Go with the Flow" suggests that California's water problems are not due to lack of supply, but rather distribution. PRI calls for the emergence of water markets to better match supply and demand. Author Amy Kaleita observes that about 75 percent of the water supply originates in the northern third of the state, with 80 percent of the demand in the southern two-thirds. To facilitate distribution, California has a long history of large and costly water projects, with more on the horizon, at a time when the state does not abound in money and its credit rating is low. Under current water law doctrine in California, which is essentially a "use-it-or-lose-it" scheme, there are disincentives for conservation.
http://liberty.pacificresearch.org/publications/go-with-the-flow-why-water-markets-can-solve-californias-water-crisis
Monday, January 26, 2009
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