Memorias de investigación
Book chapters:
Economic instruments for allocating water and ¬nancing services

Research Areas
  • Agriculture,
  • Agricultural economics

Principle 4 of the Dublin Statement1 reads that ?Water has an economic value in all its competing uses and should be recognized as an economic good.? The Dublin Statement also claimed that ?[The] Application of the ?polluter pays? principle and realistic water pricing will encourage conservation and reuse.? Economic instruments are used to allocate water resources, manage demand, reduce pollution discharges, finance water service costs and incentivize environmentally positive actions (positive externalities). Water and food security demands that scarce resources should be properly managed and services sufficiently financed. This chapter reviews four kinds of economic instruments, namely, (a) tariffs, levies and charges, (b) environmental taxes (c) water markets and (d) payments for ecosystem services. As will be reviewed in this chapter, the urban supply sector is undergoing a second round of reforms, after the feverish privatization processes of the late 1990s (see Chapters 8 and 11). The challenges have been well diagnosed: how to expand the networks in order to reach the continuously growing population of cities; to bring drinking water and sanitation services to all neighbourhoods and households whilst at the same time keeping water prices at reasonable levels.
Book Edition
Book Publishing
Book title
Water for Food and Wellbeing in Latin America and the Caribbean. Social and Environmental Implications for a Globalized Economy.
From page
To page

Research Group, Departaments and Institutes related
  • Creador: Grupo de Investigación: Economía Agraria y Gestión de los Recursos Naturales
  • Centro o Instituto I+D+i: Centro de Estudios e Investigación para la Gestión de Riesgos Agrarios Medioambientales (CEIGRAM). Centro Mixto UPM-AGROMUTUA-ENESA
  • Departamento: Economía Agraria, Estadística y Gestión de Empresas