Study Proposes New Market-Based Approach to California's Complex Water Rights System
• A new paper suggests using spectrum auction models to improve California's water transfer market between upstream and downstream users
• Current water rights make it hard to reallocate water based on price differences between senior (cheaper) rights holders like farmers and junior rights holders like cities
• The paper's authors want to design a market where water flows to whoever is willing to pay the most for it
• Some are concerned about turning water into a financial commodity that attracts investors rather than going to basic needs
• The authors believe markets can figure out water allocation better than relying on nature as climate change reduces supplies