Water Shortages in the Colorado River System

Jinyang Zhang
Econ-365 04/12/23
Water Shortages in the Colorado River System
Colorado River provides water to millions of people in various United States states. The river is also important for agriculture and industrial use. Misuse or overuse might make the resource unavailable to many people and hence negative consequences like water shortages and reduced availability. The Colorado River's water shortages can be considered an externality whereby it negatively affects those relying on the resource. It is seen as an externality because it has experience water shortages. For example, if one state uses more water than the shared portion can lead to negative social and economic impacts. The issue in the river can be viewed through economic theory because it can be analyzed as a common resource and the presence of externalities. A common resource is a kind of good with no rivals and is non-excludable, making it challenging to prevent people from using it (Rivera-Torres & Gerlak, 2021). One state using more water than the shared quantity is an example of a negative externality, thus, economic and social impact. Using more water than the shared portion reduces the amount of water in other states leading to water shortages. Water shortage may push farmers in these states to reduce crop yields and decrease income. To ensure the negative economic and social effects of water shortages in the river, policymakers need to be addressed them since markets cannot be accounted for these externalities. Implementing policies and regulations is an example of a possible solution promoting sustainable water use. Example of these measures includes water allocation systems and trading scheme. They will ensure that water resources are available and allocated effectively and sustainably to reduce water shortages.
Ensuring a just and equitable community through fair and equal access to resources is important. Economic and social policies are some of the approaches that aim to promote equality and build an environment that advocates for shared resources and ensures they are accessed by all members of society (Rivera-Torres & Gerlak, 2021). The development of strong public associations is one approach that promotes equal access and fairness to resources. These institutions provide a reliable and fair system for distribution and services. The organizations also ensure that everyone is allocated resources regardless of gender, class, or race. People and governments need to support the growth of economic policies that aim to decrease equality. The policies include increased public service spending and infrastructure, progressive taxation, and the creation of minimum wages and salaries. Other policies include labor protections. Focusing on the equitable allocation of the river’s water resources, the policies, and regulations should aim at water conservation and management and discuss the competing demands from various regions and sectors. The management and water conservation of water resources could be promoted by policies that promote efficient agriculture practices and water recycling and reuse in the Colorado River. Policies such as allocation mechanisms will help solve the issue related to unequal access to water. Wheeler et al. (2022) note t...