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Why Has Water Become A Commodity To Invest In And Trade?

Water is important. It's necessary to life, and access to it is imperative. But in the modern world, water has become a commodity—and soon, it will be traded on the stock market like oil currently is
hands with water

Water is necessary for life as we know it, and access to it is imperative. However, it’s not just a necessity, it’s also becoming a commodity, and soon, water will be traded as securities on the stock market, as oil is currently.

With the advent of the Industrial Revolution, the water became a commodity when humans began to use water in manufacturing. In response to this, countries and states enforced regulations on how much water could be used per person and created systems that ensure the safety and efficiency of water usage.

These regulations have been the cause of controversy in modern times as they are seen to stifle innovation and growth. The most notable of these controversies include “Proposition 1” in California in 2014, which voted on a proposition to regulate water rights. Other factors like climate change also contribute to the scarcity of water around the globe. We can take action and safeguard water for future generations.

What Factors Influence Water Costs Around The World

In different parts of the world, the prices of water vary greatly. This is based on supply and demand and how much access people have to water in their area. Here are some common factors that affect the cost of water in different parts of the world.

Climate Change, Water Scarcity, and Global Warming

Climate changes have greatly affected the supply of water all over the world. This has led to water shortages in some areas and increased water costs in others. In regions like California, some droughts have caused a spike in the prices of water.

Hydraulic Fracturing

As the name suggests, hydraulic fracturing is a process that uses water to create permeable rock formations by which gas and oil can be extracted. The process begins with waste water and chemical substances but is sometimes done to access natural resources. It is believed that the chemicals used for this process are absorbed by groundwater and cause harm to the environment.

Water Privatization

Many governments throughout the world have privatized water supplies for profit. This primarily aims to generate a revenue stream for governments, but in some cases, privatization has led to a rise in water prices.

Ways To Increase Water Supply

People are trying to save water in their everyday life by taking precautions and being conscious of how much they use. Water is a precious resource and should be used wisely. There are a few ways to increase access to clean water for everyone.

Rainwater Harvesting

Rainwater harvesting is a straightforward process. It is achieved using an earthen or concrete tank with a sloping roof. The water then flows into them and down the slope where it’s collected in the tank. This water can be saved and used in the household. This is a very cheap option to conserve water as it can be achieved through your means.

Sustainable Agriculture Options

There are many sustainable agriculture options to help increase access to clean water. The first way is through building rain gardens. Rain gardens are developed with porous surfaces and plants to collect water during rainfall. The water then seeps into the ground, replenishing underground water sources. You can also do crop rotation. This is a process by which one crop is grown in a field for a specified period before switching to another type of crop. The alternating crops help the soil retain moisture and prevent the depletion of essential nutrients.

Impact Investing

When discussing impact investing, we think of methods of investing that will contribute to positive change. Water is something that everyone needs, so this form of investment is an excellent way to make an impact in your community. You can invest in clean water projects or use the money to build new water facilities. For example, if you’re a developer, you can help pay for developing a new rainwater harvesting system in a rural area.

Climate Change

Climate change is a major global issue. It can cause droughts and floods, which may lead to water shortages. There needs to be action taken to combat the effects of climate change. The first step is to reduce the world’s carbon emissions and make energy more efficient. Many renewable energy sources like wind and solar can be used instead of fossil fuels.


Water is essential for human survival and has been for most of our existence. It plays a vital role in the growth and sustenance of life. With an increasing population and greater reliance on water, the water supply is becoming increasingly limited. The increased demand for water is also putting pressure on the environment and our health.

With current water technology, finding and accessing clean water is becoming more complex. However, there are ways to increase water security and make water management more efficient. This can be done through sustainable farming and urban engineering. By making small changes in your everyday life, you can make a big difference in the availability of clean water for everyone.

June 27, 2022