Use It or Lose It: Exercising one's right to waste water (2015)
projects.propublica.org
projects.propublica.org
Then we could at least apply market economics to the situation as the flow of water decreases. Just consider it a strategic sunk cost that Saudi Arabia or whomever has obtained a financial entitlement to most of the Colorado River (Saint Coase would be proud), and then move forward from there. I'd hate to see the imaginary property regime get any more entrenched, but it would seem better than the current impasse.
edit: I meant corporate budgets but thanks for shedding light on the original question.
Then, if you want, you can provide a subsidy in terms of cash payments. That subsidy must not depend on the actual consumption of water.
This way, the marginal cost of the resource is correctly priced.
See also LVT, CO2 pricing,…
1. Zero-Based Budgeting: Instead of basing this year's budget on last year's spending, start from 'zero' each year. Evaluate each department's needs freshly.
2. Rolling Budgets: Allow for unspent funds to roll over into the next fiscal year, removing the incentive to spend just for the sake of it.
3. Quarterly Review: Don't allocate for a whole year. Break it into quarters and reassess needs regularly based on changes in environment or strategy.
4. Performance-Based Allocation: Link part of the budget to department performance metrics. Better performance leads to more budget.
5. Flexible Allocation: Have some funds allocated for urgent or emerging needs that arise over the year.
The real cause of groundwater aquifer depletion is a law of conservation. That when the water goes into plants and animals and then those products are shipped away, there's nothing bringing the water back into the parched lands except for the rather slow and increasingly unpredictable patterns of the water cycle. California's Central Valley is facing this issue. The snowpack from last year made it abundantly clear how important it is to recharge groundwater using what's pouring off the mountains, rather than letting it flow to the ocean. Use it or lose it, indeed.
If the government takes away your land or your building or your gold, that’s eminent domain. But these water rights are permission to take water in the future that may or may not ever show up (and increasingly does not show up), and they may de facto not be usable regardless of any government action.
Alternatively, don’t take them away — just tax them. Set a price for water such that there is no scarcity (keeping in mind that the money collected can be used to reclaim, desalinate or otherwise acquire more water), and let anyone else buy water at the same price, and poof they’re still there but no longer worth much.
When there is air pollution affecting price of my property, or someone built something to spoil the view, should I claim compensation too?