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Liquid markets - Frontier Economics bulletin

Climate change, population growth and tougher environmental standards present a considerable challenge for UK water and wastewater sectors. Specifically, how can the industry and regulators make sure that we use water more effectively and efficiently as it gets scarcer?

The answer might lie in making water companies explicitly pay for, and compete for, the water they use. In 2008, the UK Government asked for an independent review of the scope to use competition to drive innovation in the industry (the Cave Review). It is now consulting on the recommendations. Frontier's latest bulletin looks at the lessons available from Australia, a country that has used water abstraction licence trading for several years in order to address its own problems of water scarcity.

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