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U
nnoticed by many Americans, the country is facing a water crisis.
The Southeast went through a record-breaking shortage this summer. The
West is facing its worst drought in a century, and climate change will
likely further deplete the water supply. At the same time, people are
moving to Western states in droves: Census projections indicate that
the population in the Western states that draw water from the Colorado
River basin (Arizona, California, Colorado, Nevada, New Mexico, Utah,
and Wyoming) will increase by 47 percent between 2000 and 2030.
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Michael Greenstone is the 3M Professor of Environmental Economics at MIT, a research associate at the National Bureau of Economic Research, and a nonresident senior fellow at the Brookings Institution.
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