Water is one of the world’s most vital resources. So is there reason to freak out now that profit-hungry hedge funds and other investors can trade it like a barrel of oil or shares of Apple? That’s exactly what CME Group recently did in California when it launched the world’s first futures market for water in December 2020. Put simply, a futures market lets people place bets on the future price of water.
-Written by Ellen Bruno, of University of California, Berkeley and Heidi Schweizer, of North Carolina State University.