By Celeste M. Hammond and Virginia M. Harding
Two recent Daily Law Bulletin articles have developed the concept that water is a scarce natural resource even in the Midwest and Chicago, where proximity to the Great Lakes suggests otherwise.
“Are water wars coming?” and “Water conservation and real estate” focused the attention of the legal and real estate community on the fact that water really is a limited resource and that instituting water conservation programs will become both a household and community priority.
Here we review one approach to water conservation that is supported by basic economics: provide financial incentives in the form of increased rates.