Irrigation Water Pricing

This book contains 14 separately authored chapters on the pricing of irrigation water. The chapters are entitled: (1) Water pricing in irrigation: the lifetime of an idea; (2) Water pricing in irrigation: mapping the debate in the light of experience; (3) Why is agricultural water demand unresponsive at low price ranges; (4) Get the prices right: a model of water prices and irrigation efficiency in Maharashtra, India; (5) Thailand's free water: rationale for a water charge and policy shifts; (6) Water rights and water fees in rural Tanzania; (7) Who will pay for water? The Vietnamese State's dilemma of decentralization of water management in the Red River Delta; (8) Water pricing in Haryana, India; (9) The energy-irrigation nexus in South Asia: groundwater conservation and power sector viability; (10) Wells and canals in Jordan: can pricing policies regulate irrigation water use; (11) Water pricing in Tadla, Morocco; (12) Water pricing policies and recent reforms in China: the conflict between conservation and other policy goals; (13) Water pricing and irrigation: a review of the European experience; and (14) Policy-driven determinants of irrigation development and environmental sustainability: a case study in Spain.

As globalization links economies, the value of a country's irrigation water becomes increasingly sensitive to competitive forces in world markets. Water policy at the national and regional levels will need to accommodate these forces or water is likely to become undervalued. The inefficient use of this resource will lessen a country's comparative advantage in world markets and slow its transition to higher incomes, particularly in rural households. While professionals widely agree on what constitutes sound water resource management, they have not yet reached a consensus on the best ways of implementing policies. Policymakers have considered pricing water - a debated intervention - in many variations. Setting the price 'right,' some say, may guide different types of users in efficient water use by sending a signal about the value of this resource. Aside from efficiency, itself an important policy objective, equity, accessibility, and implementation costs associated with the right pricing must be considered. Focusing on the examples of China, Mexico, Morocco, South Africa, and Turkey, Pricing Irrigation Water provides a clear methodology for studying farm-level demand for irrigation water. This book is the first to link the macroeconomics of policies affecting trade to the microeconomics of water demand for irrigation and, in the case of Morocco, to link these forces to the creation of a water user-rights market. This type of market reform, the contributors argue, will result in growing economic benefits to both rural and urban households.

Water pricing to achieve conservation in scarce water resources is a major policy challenge. This book provides credible evidence from water pricing experiences in various countries around the world. The book chapters, written by experts in water pricing from various countries, documents the past 10 to 15 years of water pricing experiences in Australia, Brazil, Canada, China, Colombia, France, India, Israel, Italy, Mexico, The Netherlands, New Zealand, South Africa and Spain. The book includes also several chapters that review innovations in water pricing in various countries, such as new reform mechanisms, achieving social objectives via water pricing, achieving revenue recovery, water use efficiency and customer equity, and charging the poor.

As globalization links economies, the value of a country's irrigation water becomes increasingly sensitive to competitive forces in world markets. Water policy at the national and regional levels will need to accommodate these forces or water is likely to become undervalued. The inefficient use of this resource will lessen a country's comparative advantage in world markets and slow its transition to higher incomes, particularly in rural households. While professionals widely agree on what constitutes sound water resource management, they have not yet reached a consensus on the best ways of implementing policies. Policymakers have considered pricing water - a debated intervention - in many variations. Setting the price 'right,' some say, may guide different types of users in efficient water use by sending a signal about the value of this resource. Aside from efficiency, itself an important policy objective, equity, accessibility, and implementation costs associated with the right pricing must be considered. Focusing on the examples of China, Mexico, Morocco, South Africa, and Turkey, Pricing Irrigation Water provides a clear methodology for studying farm-level demand for irrigation water. This book is the first to link the macroeconomics of policies affecting trade to the microeconomics of water demand for irrigation and, in the case of Morocco, to link these forces to the creation of a water user-rights market. This type of market reform, the contributors argue, will result in growing economic benefits to both rural and urban households.

The price of water is a key determinant of both the economic efficiency and the environmental effectiveness of water services. This book reviews current practices and recent trends in water pricing practices for the household, agriculture, and industrial sectors in OECD countries. It addresses pricing issues related to the full range of water services, including public supplies, sewage treatment and disposal, abstraction and discharge fees, and cost recovery. It also outlines recent developments in institutional arrangements related to water pricing, and briefly considers questions concerning the affordability of water services and the responsiveness of water demands to changes in price levels. Its broad coverage of issues, sectors, and countries makes it a unique overview of trends in the water pricing field.