What is water trading?
water trading concerns the purchase and sale of rights and demands on water. Although non -formal agreements have been carried out for a long time, water trading has become a real type of financial market in the 21st century, where buyers can trade derivatives, buy long or short and follow other financial trading systems more frequently on forex or stock markets. Critics of water trading warn that they allow what is once a primary means of ensuring the same approach to water to become a refuge for profits and rising prices, can expose to families with low incomes to the risk of losing the necessary water sources. Neo rare water resources have led to the first private agreements to buy or share water rights across the country. If the stream passed through the land, the neighbors could pay for the use of the source, thus ensuring a relatively fair distribution of resources and enriching whole regions, rather than little happiness with direct access. In 1994 the rights to water were separated fromLand rights to facilitate trading. Many trades are now held among government and commercial companies than among private citizens.
In California, water trading in the southern half of the state has always been a controversial problem. Farmers in the wide valleys of medium California receive water at a subsidized rate to facilitate the necessary work in providing food and livestock through agriculture. Southern California, with several large cities and the history of long -term drought, often represented an interesting puzzle for farmers who received low price water: in some cases it is much more advantageous for farmers to sell water providers than to actually grow crops.
water trading can also sometimes be related to the environmental concept as trading water quality. This is a means of motivating enterprises to improve the quality of water onBased on the stipulated regulations. Water quality trading concerns the use of quality credits that can be traded among businesses with high cost of pollution and others in the same basin. Businesses that have cheap means to reduce pollution are paid by companies that have high cost of pollution, creating income for the seller and cost savings for the buyer.
water trading and even water quality trading remains quite controversial in some areas. While critics of trading suggest that markets should not be allowed to play cubes with one of the few things that are absolutely necessary for human survival, critics of water quality trading claim that allowing polluters to repay smaller businesses at best by temporary solutions. Despite these serious critics, it seems that trading in water and pollution rights is gaining popularity every year.