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Water
Aqua Index: 1217           12/22/2016 22:30

RAMIFICATIONS

water priceThere is no international convention for the way in which water is traded and certainly no common market providing a unified price. Price varies depending on political and geographic factors in the area of origin of the water. This has created inefficiency in the way that water is allocated; with unbalanced appropriation in various commodities and products (the manufacture of a simple T-shirt can require over 4 tons of water!).

As urban populations increase and given current volatility in the world climate, demand for water has been sharply on the increase.

Aqua Index promotes markets in water as a way to correct these inefficiencies. A market based price incentivises producers to allocate resources more responsibly.

In addition, a water market may be the most efficient and effective way of distributing (and releasing) scarce water resources, as well as allocating water rights to those who value them most.

Ramifications of international trade in water:

ECONOMIC

ENVIRONMENTAL

 

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