Water share trading: business risk solution or social hazard inauguration?

Ivor Altaras Penda ()
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Ivor Altaras Penda: Libertas International University

Acta Economica Et Turistica, 2021, vol. 7, issue 1, 3-40

Abstract: In this paper the author explores the topic of trading water on financial markets, which has resurfaced with the presentation of the NQH2O water index on the NASDAQ stock exchange in New York at the end of 2020. The paper poses 4 fundamental questions related to the topic of water and its trading on an regulated capital market, offering answers from two opposing groups’ viewpoints: market actors who see plentiful business benefits in trading futures contracts based on water as an underlying asset on the one hand, and those who see endangerment of the legal status of water in trading with such financial instruments, which could lead to adverse effects on the entire population of people on the other hand. The offered arguments from both sides show that there are no final answers on the posed questions, nor are there solutions for the problems that obviously exist in reality. Additionally, it is obvious that the level of understanding between these two groups is very low, with numerous reproaches from both sides. The purpose of this paper is to recognise the open questions and offer various, and sometimes opposing answers to them in order to initiate a further dialogue, with a purpose of a better future for all of us, because water is life.

Keywords: NQH2O; water trading; social hazard; hedging; right to water (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:awd:acectu:v:7:y:2021:i:1:p:3-40

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