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Role of economic instruments in water allocation reform: lessons from Europe

Author

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  • Dolores Rey
  • Carlos Dionisio Pérez-Blanco
  • Alvar Escriva-Bou
  • Corentin Girard
  • Ted I. E. Veldkamp

Abstract

A growing number of countries are reforming their water allocation regimes through the use of economic instruments. This article analyzes the performance of economic instruments in water allocation reforms compared against their original design objectives in five European countries: England, France, Italy, Spain and the Netherlands. We identify the strengths of, barriers to and unintended consequences of economic instruments in the varying socio-economic, legal, institutional and biophysical context in each case study area, and use this evidence to draw out underlying common guidelines and recommendations. These lessons will help improve the effectiveness of future reforms while supporting more efficient water resources allocation.

Suggested Citation

  • Dolores Rey & Carlos Dionisio Pérez-Blanco & Alvar Escriva-Bou & Corentin Girard & Ted I. E. Veldkamp, 2019. "Role of economic instruments in water allocation reform: lessons from Europe," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 35(2), pages 206-239, March.
    • Handle: RePEc:taf:cijwxx:v:35:y:2019:i:2:p:206-239
    DOI: 10.1080/07900627.2017.1422702
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    Cited by:

    1. Rishma Chengot & Jerry W. Knox & Ian P. Holman, 2021. "Evaluating the Feasibility of Water Sharing as a Drought Risk Management Tool for Irrigated Agriculture," Sustainability, MDPI, vol. 13(3), pages 1-16, January.
    2. Victoria Westbrooke & Xiaomeng Lucock & Isobel Greenhalgh, 2023. "Drone Use in On-Farm Environmental Compliance: An Investigation of Regulators’ Perspectives," Sustainability, MDPI, vol. 15(3), pages 1-15, January.
    3. Palomo-Hierro, Sara & Loch, Adam & Pérez-Blanco, C. Dionisio, 2022. "Improving water markets in Spain: Lesson-drawing from the Murray-Darling Basin in Australia," Agricultural Water Management, Elsevier, vol. 259(C).
    4. R. R. Weerasooriya & L. P. K. Liyanage & R. H. K. Rathnappriya & W. B. M. A. C. Bandara & T. A. N. T. Perera & M. H. J. P. Gunarathna & G. Y. Jayasinghe, 2021. "Industrial water conservation by water footprint and sustainable development goals: a review," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 12661-12709, September.
    5. Hassan, Wasim & Manzoor, Talha & Muhammad, Abubakr, 2023. "Improving equity in demand-driven irrigation systems through a rights-preserving water allocation mechanism," Agricultural Water Management, Elsevier, vol. 287(C).
    6. Ali Aljamal & Mark Speece & Mohsen Bagnied, 2020. "Sustainable Policy for Water Pricing in Kuwait," Sustainability, MDPI, vol. 12(8), pages 1-18, April.
    7. Athanasios Tsiarapas & Zisis Mallios, 2023. "Estimating the long-term impact of market power on the welfare gains from groundwater markets," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 25(3), pages 377-406, July.
    8. Pérez-Blanco, C. Dionisio & Sapino, Francesco & Saiz-Santiago, Pablo, 2023. "First-degree price discrimination water bank to reduce reacquisition costs and enhance economic efficiency in agricultural water buyback," Ecological Economics, Elsevier, vol. 205(C).
    9. García-López, Marcos & Montano, Borja & Melgarejo, Joaquín, 2022. "Alternative tariff structures and household composition: Evidence from Spain's Valencia region," Utilities Policy, Elsevier, vol. 79(C).
    10. Marcos García-López & Joaquín Melgarejo & Borja Montano, 2021. "The Financing of Wastewater Treatment and the Balance of Payments for Water Services: Evidence from Municipalities in the Region of Valencia," Sustainability, MDPI, vol. 13(11), pages 1-15, May.
    11. Agudo-Domínguez, Alberto & Pérez-Blanco, C. Dionisio & Gil-García, Laura & Ortega, José Antonio & Dasgupta, Shouro, 2022. "Climate-sensitive hydrological drought insurance for irrigated agriculture under deep uncertainty. Insightful results from the Cega River Basin in Spain," Agricultural Water Management, Elsevier, vol. 274(C).
    12. Nur Syuhada, C.I. & Mahirah, K. & Roseliza, M.A., 2020. "Dealing with attributes in a discrete choice experiment on valuation of water services in East Peninsular Malaysia," Utilities Policy, Elsevier, vol. 64(C).
    13. Mitter, Hermine & Schmid, Erwin, 2021. "Informing groundwater policies in semi-arid agricultural production regions under stochastic climate scenario impacts," Ecological Economics, Elsevier, vol. 180(C).

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