kolmogorov:

....If we are taking too many hot showers, that really means only one thing: they are too cheap. It doesn't mean we are bad people, it doesn't mean we don't care about the world or our neighbors. It means that the price of the water and energy we are using does not properly include the cost of externalities, like global warming. The message we get when we take a shower is that it costs, essentially, nothing. The solution is not tricky or mysterious. If we are emitting too much CO2 into the atmosphere, we need CO2 markets (cap-and-trade). This will bundle in the cost of the CO2 emission into the price of fuel, raising the price of heating up all of that water for your hot shower. The same goes for the cost of water. ....

Yes of course- the Free Market Gods will fix everything! Just price everything right! For example- in your fantasyland, poor people will have to choose between eating a meal or taking a bath because they are priced out of daily showers. Whereas rich CEO's can take as many hot baths as they damn well please because they get paid millions in bonus just for breathing air. Water scarcity? No problem - the magical free market will ensure that no poor people can afford to drink water, or eat- since food is grown with water. Problem solved.