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How 'Virtual Water' Can Help Ease California's Drought

HughPickens.com writes Bill Davidow And Michael S. Malone write in the WSJ that recent rains have barely made a dent in California's enduring drought, now in its fourth year. Thus, it's time to solve the state's water problem with radical solutions, and they can begin with "virtual water." This concept describes water that is used to produce food or other commodities, such as cotton. According to Davidow and Malone, when those commodities are shipped out of state, virtual water is exported. Today California exports about six trillion gallons of virtual water, or about 500 gallons per resident a day. How can this happen amid drought? The problem is mispricing. If water were priced properly, it is a safe bet that farmers would waste far less of it, and the effects of California's drought—its worst in recorded history—would not be so severe. "A free market would raise the price of water, reflecting its scarcity, and lead to a reduction in the export of virtual water," say Davidow and Malone. "A long history of local politics, complicated regulation and seemingly arbitrary controls on distribution have led to gross inefficiency."

For example, producing almonds is highly profitable when water is cheap but almond trees are thirsty, and almond production uses about 10% of California's total water supply. The thing is, nuts use a whole lot of water: it takes about a gallon of water to grow one almond, and nearly five gallons to produce a walnut. "Suppose an almond farmer could sell real water to any buyer, regardless of county boundaries, at market prices—many hundreds of dollars per acre-foot—if he agreed to cut his usage in half, say, by drawing only two acre-feet, instead of four, from his wells," say the authors. "He might have to curtail all or part of his almond orchard and grow more water-efficient crops. But he also might make enough money selling his water to make that decision worthwhile." Using a similar strategy across its agricultural industry, California might be able to reverse the economic logic that has driven farmers to plant more water-intensive crops. "This would take creative thinking, something California is known for, and trust in the power of free markets," conclude the authors adding that "almost anything would be better, and fairer, than the current contradictory and self-defeating regulations."

6 of 417 comments (clear)

  1. Or maybe... by gweihir · · Score: 5, Interesting

    ... don't plant water-intensive crops in a drought zone? Naaa, that would require actual understanding of the situation. As it is, the only thing that will help is all those water-wasters going bankrupt. Reality is merciless.

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    1. Re:Or maybe... by wiredlogic · · Score: 4, Interesting

      the only thing that will help is all those water-wasters going bankrupt

      More like getting massive federal subsidies to make up for their losses from growing crops in a desert.

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  2. Desalinate Hadera style by Zeio · · Score: 4, Interesting

    When Hadera desalination plant was brought online water concerns were vastly alleviated.

    CA has a water infrastructure built for less than 20 million people and 40+ million now live here. CA just passed a 8 billion water bond but there is no new water in that bill, just a lot of fraud and waste but no new water.

    Instead of police-state water rationing and other idiotic measures which require people to drastically change how they live and have people reporting on each other, make more water. Time to desalinate.

    http://www.water-technology.net/projects/hadera-desalination/

    Its amazing in the atomic-jet-space-age with internet 40 million people in the 5-6th largest economy in the world (CA alone) sit around like morons and pray for rain and "get worried" when there are solutions on the table now.

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    1. Re:Desalinate Hadera style by Dereck1701 · · Score: 4, Interesting

      Where are you getting $2,000 per AF from? From what I can find when properly done desalination with current technology costs about $800 per acre foot. And while California farmers used to get some pretty low rates $20 is far from normal any more, some farmers in Fresno have had to pay $1,100 per AF and north of Sacramento they've been paying around $500. A third of the farmland in some water districts is being left fallow (unplanted). This being Californian things can be extra insane, there are some cases of farmers being charged MORE money now using little or no water then when they were using massive amounts of it before the drought, called a "standby charge", if their use falls below a minimum threshold.

  3. Re:And the almond trees die. by Rei · · Score: 4, Interesting

    This plan seems to forget that it takes time to grow these crops. It takes 3 years for your first crop of almonds and 8 before the tree is delivering anything like commercial quantities.

    You think California's water crises are just going to disappear in a decade? This is a long-term problem. The long timeframes on crop switchovers for certain types of crops is just more reason one needs to take immediate action.

    There are lots and lots of ways to lower the water usage of both the general population and water intensive applications such as farming.

    And all of them will be properly handled if there's a fair market pricing for water.

    Using RO membrane treatment plants the water is purer then what falls from the sky

    Are you talking RO of salty or fresh water? Even RO of freshwater can be pretty expensive; RO of saltwater is in most places cost prohibitive (not to mention a massive energy consumer). Though there are some interesting alternative technologies which may provide for affordable desalination in the future.

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  4. Re:And the almond trees die. by pepty · · Score: 4, Interesting

    The aquifiers won't go dry, but it eventually becomes cost prohibitive to pump water from ever deeper wells (1000 ft or more) and then having to demineralize it. Meanwhile, the upper layers of the aquifer become permanently compacted (areas of the cental valley have subsided 25 ft or more due to ground water depletion) and never recover their ability to hold so much water.