moreover as in the case of other environmental resources such as greenhouse gas emission permits auctions generate revenues without recourse to distortive taxation for example such revenues could be used to fund the purchases of water rights for environmental objectives which are currently paid for from tax revenues auctions could also be applied to nonconsumptive uses such as electricity generation hydroelectric generation benefits from rents from the free utilisation of water which could be appropriated by government moreover in periods of drought local governments have purchased water rights from power generators using tax revenue a number of water concessions for electricity generation are falling due in the near future