Monday, January 28, 2008
ECON 260: Re-selling Subsidized Water
With water becoming increasingly precious in California, a rising number of farmers figure they can make more money by selling their water than by actually growing something.
Because farmers get their water at subsidized rates, some of them see financial opportunity this year in selling their allotments to Los Angeles and other desperately thirsty cities across Southern California, as well as to other farms.
Wouldn't efficient pricing of water do better than providing farmers a subsidy to get more water and then allowing them to resell it to others at a higher price?
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