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Is the Glass Half Empty Or Half Full?: Issues in Managing Water Challenges and Policy Instruments
Author:
Ms. Kalpana Kochhar
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Ms. Catherine A Pattillo
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Ms. Yan M Sun
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Mrs. Nujin Suphaphiphat
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Mr. Andrew J Swiston
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Mr. Robert Tchaidze
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Mr. Benedict J. Clements
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Ms. Stefania Fabrizio
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Valentina Flamini null

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Ms. Laure Redifer
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Mr. Harald Finger
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Series:
Staff Discussion Notes
Volume/Issue:
Volume 2015: Issue 011
Language:
English
Publication Date:
02 Jun 2015
DOI:
https://doi.org/10.5089/9781484391198.006
ISBN:
9781484391198
ISSN:
2617-6750
Pages:
44
Keywords:
SDN; water use; water resource; country water price subsidy; cost recovery; demand management; natural resource; water withdrawal; Water; subsidies; externalities; public utilities; pricing reform; Water resources; Infrastructure; Agricultural sector; Water subsidies; Global; South Asia; Middle East; Sub-Saharan Africa
Legal-disclaimer:
Staff Discussion Notes (SDNs) showcase policy-related analysis and research being developed by IMF staff members and are published to elicit comments and to encourage debate.The views expressed in this Policy Discussion Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy.
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This paper examines water challenges, a growing global concern with adverse economic and social consequences, and discusses economic policy instruments. Water subsidies provided through public utilities are estimated at about $456 billion or 0.6 percent of global GDP in 2012. The paper suggests that getting economic incentives right, notably by reforming water pricing, can go a long way towards encouraging more efficient water use and supporting needed investment, while enabling policies that protect the poor. It also discusses pricing reform options and emphasizes an integrated and holistic approach to manage water, going beyond the water sector itself. The IMF can play a helpful role in ensuring that macroeconomic policies are conducive to sound water management.
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Cover Staff Discussion Notes
Staff Discussion Notes
ISSN:
2617-6750
Publisher:
International Monetary Fund