Blog: Implications of California’s water futures market
In California’s Water Futures Market: Explained, Cora Kammeyer describes how futures markets operate generally and the particulars of California’s version. This new water futures market has attracted considerable attention and hyperbole. Here we explore the potential implications of this novel financial tool through the lens of California water supply reliability. The water futures market opened on December 7, 2020, intended to improve the transparency of water trade prices and to enable participants to hedge their financial risk.