Could auctions help California make better use of its water? This leading economist believes so
California is in a megadrought. Like many other places across the world, climate heating and unsustainable water usage have brought California close to a potentially devastating water shortage. But some help may come from an unexpected place: economics. … Waste also means opportunity, and the opportunity Milgrom sees would be transferring water use from those who value it less to those who value it more (and are willing to pay more for it).