Conflicts over water in Florida have become more frequent, intense, and costly in recent years. In a new backgrounder titled "Tapping Water Markets in Florida," Sal Nuzzo, Executive Director of Consumers Defense and Senior Fellow at The James Madison Institute, along with Reed Watson, Director of the Hayek Center for the Business of Prosperity and Professor of Practice at Clemson University, advocate for the implementation of water markets.
Water markets allow competing users to trade water voluntarily. According to the authors, this system offers Florida the best opportunity to align economic growth with water conservation and ecosystem health.
The study outlines how water markets can address Florida's most pressing water issues and suggests several policy reforms for lawmakers and regulators to consider. Reed Watson emphasized the benefits: “The beauty of water markets lies in their ability to encourage conservation without mandates. Water markets incentivize users to think creatively about how to use less and save more. By making relatively minor policy adjustments, we can harness the power of markets to secure a sustainable water future for the Sunshine State.”
Sal Nuzzo also highlighted market-based incentives as crucial: “The most effective way to promote conservation of a scarce resource like water is to provide market-based incentives. With a use-it-or-lose-it approach, there is no reason for an individual or company to conserve. Incentives breed innovation, and that is what can ultimately address the challenges Florida faces in the area of water quantity and quality. Policymakers can and should take a hard look as this issue will not only impact us but our grandchildren and beyond.”
For further details, readers are encouraged to consult "Tapping Water Markets in Florida."
The James Madison Institute is a 501(c)3 organization dedicated to limited government, economic freedom, federalism, individual liberty coupled with individual responsibility. The institute conducts research on issues such as criminal justice, healthcare, taxes, and regulatory environments.