Is the Glass Half Empty Or Half Full?: Issues in Managing Water Challenges and Policy Instruments

By Kalpana Kochhar, Catherine A Pattillo, Yan M Sun, Nujin Suphaphiphat, Andrew J Swiston, Robert Tchaidze, Benedict J. Clements, Stefania Fabrizio, Valentina Flamini, Laure Redifer, Harald Finger

June 2, 2015

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Kalpana Kochhar, Catherine A Pattillo, Yan M Sun, Nujin Suphaphiphat, Andrew J Swiston, Robert Tchaidze, Benedict J. Clements, Stefania Fabrizio, Valentina Flamini, Laure Redifer, and Harald Finger. Is the Glass Half Empty Or Half Full?: Issues in Managing Water Challenges and Policy Instruments, (USA: International Monetary Fund, 2015) accessed September 19, 2024

Disclaimer: This Staff Discussion Note represents the views of the authors and does not necessarily represent IMF views or IMF policy. The views expressed herein should be attributed to the authors and not to the IMF, its Executive Board, or its management. Staff Discussion Notes are published to elicit comments and to further debate.

Summary

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.

Subject: Agricultural sector, Economic sectors, Environment, Expenditure, Infrastructure, National accounts, Population and demographics, Water resources, Water subsidies

Keywords: Agricultural sector, Cost recovery, Country water price subsidy, Demand management, Externalities, Global, Infrastructure, Middle East, Natural resource, Pricing reform, Public utilities, SDN, South Asia, Sub-Saharan Africa, Subsidies, Water, Water resource, Water resources, Water subsidies, Water use, Water withdrawal

Publication Details

Pages:

44
Volume:

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DOI:

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Issue:

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Series:

Staff Discussion Notes No. 2015/011
Stock No:

SDNEA201511
ISBN:

9781484391198
ISSN:

2617-6750

Notes

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