As droughts, record temperatures and high crop prices remind us, the world’s water supply is not co-located with the world’s water demand. This column takes a factor-abundance trade-theory approach to the problem and suggests that open markets that make specialisation of production possible may offer a way to fight water scarcity.
As the severe drought in key US farming states continues, worries mount over rising food prices. This recent drought is but one of many events that underscore how freshwater scarcity will be a major challenge of the 21st century. Almost one fifth of the world’s population currently suffers the consequences of water scarcity, and this number is expected to increase (UNESCO 2009). Moreover, population growth, pollution, rising standards of living, and the diet and lifestyle changes they imply will continue to increase the demand for water and strain available water resources.
In spite of reports about an impending water crisis, the world is not running out of water. For one, fresh water is a finite but renewable global resource. In addition, there is more than enough fresh water on earth to satisfy the growing demand.
See full Article.
Friday, August 31, 2012
Using water resources efficiently on a global scale
As droughts, record temperatures and high crop prices remind us, the world’s water supply is not co-located with the world’s water demand. This column takes a factor-abundance trade-theory approach to the problem and suggests that open markets that make specialisation of production possible may offer a way to fight water scarcity.
As the severe drought in key US farming states continues, worries mount over rising food prices. This recent drought is but one of many events that underscore how freshwater scarcity will be a major challenge of the 21st century. Almost one fifth of the world’s population currently suffers the consequences of water scarcity, and this number is expected to increase (UNESCO 2009). Moreover, population growth, pollution, rising standards of living, and the diet and lifestyle changes they imply will continue to increase the demand for water and strain available water resources.
In spite of reports about an impending water crisis, the world is not running out of water. For one, fresh water is a finite but renewable global resource. In addition, there is more than enough fresh water on earth to satisfy the growing demand.
See full Article.
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