To alleviate chronic water scarcity in arid agricultural regions, several regional authorities have introduced market-based water rights trading. Proponents contend that allowing farmers to sell unused allocations incentivizes water conservation and directs resources to high-value industrial uses. However, critics argue that unrestricted trading leads to 'water farming,' where investors purchase land purely to extract and export groundwater, permanently depleting local aquifers and undermining rural economies. Nonetheless, proponents maintain that proper regulatory caps on transfer volumes can prevent over-extraction while preserving economic efficiency.
In the argument above, the statement that unrestricted trading leads to 'water farming' functions in which of the following ways?
- It introduces a counterargument that highlights a key drawback of unregulated trading, which the argument subsequently addresses with a proposed qualification.Cevap
- BIt represents the main conclusion of the passage regarding the ultimate failure of agricultural water rights markets.
- CIt provides empirical evidence offered by the author to support the claim that water trading incentivizes conservation.
- DIt reflects the author's own stance that all market-based water rights trading programs should be immediately abolished.
- EIt serves as an un-rebutted factual premise demonstrating why regulatory caps are impossible to enforce.