In all of environmental economics the one thing that has specifically stuck with me was the water crisis in California. What we essentially learned was that due to water rights and subsidies given to farmers, they were able to obtain water for a cheaper price than those in the city. So while the city was struggling, the farmers were ok. We then discussed different ways that polices might help alleviate this problem. We discussed a possible cap and trade policy that might help limit the price water is sold, but shortly after learned that this would not be cost effective. We then talked about perhaps allowing the farmers to sell water. It seemed through this practice we were able to eliminate the problem of water being too expensive, while still being cost effective. It seemed that the problem could be fixed without harming or effecting one side.
This idea really made me think about the world’s problems and how it is possible to fix them. There are a lot of issues that need to be resolved, poverty, climate change, water rights and international relations. Through this simple solution to a hard problem it shows that it may be possible to solve the worlds problems one day, not necessarily from only economic solutions, but using different thinking or attacking the problem in a way that is not conventionally thought.