The Economics of Water Resource Allocation: Valuation Methods and Policy Implications
Ben Groom () and
Phoebe Koundouri ()
No 1137, DEOS Working Papers from Athens University of Economics and Business
In this chapter a ÃƒÂ¢Ã¯Â¿Â½Ã¯Â¿Â½watershed economics approachÃƒÂ¢Ã¯Â¿Â½Ã¯Â¿Â½ that could be applied in Cyprus is proposed which is composed of two important stages. In Stage I economic valuation techniques are used to establish the economic value of the competing demands for surface and groundwater, incorporating where necessary an analysis of water quality. The valuation exercise allows the objective balancing of demands based upon the equi-marginal principle to achieve economic efficiency. In Stage II a policy impact analysis is proposed which addresses issues of social equity and the value of water for environmental/ecological purposes. The analysis is undertaken within the confines of the watershed; the most natural unit for the analysis of water allocation and scarcity since it determines the hydrological links between competing users and thus the impacts of one user upon another. The methodology is encapsulated by a case study of the Kouris watershed in Cyprus.
Keywords: Watershed economics approach; Economic valuation techniques; Balancing demands; Social equity; Kouris watershed (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Published in Water Resources Allocation: Policy and Socioeconomic Issues in Cyprus
Downloads: (external link)
http://wpa.deos.aueb.gr/docs/Chapter_7.pdf First version (application/pdf)
Working Paper: The Economics of Water Resource Allocation: Valuation Methods and Policy Implications (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aue:wpaper:1137
Access Statistics for this paper
More papers in DEOS Working Papers from Athens University of Economics and Business Contact information at EDIRC.
Series data maintained by Ekaterini Glynou ().