GEF

Unit 4  |  The Global Water Crisis 108 Scientists are also developing genetically modified crops that are better able to withstand drought conditions, a con- troversial approach due to its expense and unknown effects on ecosystems. Through these techniques and others, climate change is focusing attention on the urgent need to make our relationship with water more sustainable. Drip irrigation improves efficiency by reducing water lost to evaporation. 4.4  Water Economics—Water Markets, Virtual Water, and Privatization Water economics, water markets, and water privatization are contentious and complex issues that resist simple analysis and black and white conclusions. Economists make the case that water distribution and use is usually highly inefficient because of the lack of clear property rights, wasteful subsidies, and externalities that distort water use. In general, water does not behave as a typical economic GENETICALLY MODIFIED CROPS Crops such as corn or soy- beans in which genes from one species are placed into another entirely unrelated species, for example to increase yield or to provide resistance to pests. EXTERNALITIES Consequence of an industrial or commercial activity that is not reflected in the cost of the goods or services involved.