About Lesson
- For various reasons, the market mechanism cannot be expected to work perfectly for water management and public policy must intervene in some form. From the economist’s point of view fixed cost for water system are typically high.
- Water is essential for consumption and production purpose
- Dependency on the water scarcity it can be worth pricing or priceless
- Water policy is an important issue for environment economists because demand and supply depend on so many technical and ecological parameters
- Policy makers of France, Germany and Netherlands were among the first to use the ecosystem approach to water resource policy.
- Water has been considered a free good
The water policy is for:
- Reducing sediment loads
- Regulating the timing of water flows (wet & dry seasons)
- Increasing the volume of water
- Improving the quality of available water for domestic use
- Enhancing eco-tourism
- Generating power supply
- Using a means of transport
- Using for irrigation
- Using for industrial use