Taxing Water Is the Only Way to Limit Use and Reduce Depletion

Tax policy has the power to limit overexploitation of finite resources, and water is the most finite resource we have. But judging from the massive US groundwater depletion since 1900, we’re running out.

As climate change shifts the allocation of freshwater resources, dumping too much in some areas and casting others into drought, tax policy may provide an answer. A tax on every gallon of groundwater pumped would simultaneously spur users to conserve water while compensating society for the depletion of ...