Institutional and Economic Instruments for Sustainable Water Management in the Meditteranean Region
Institutional and Economic Instruments for Sustainable Water Management in the Meditteranean Region
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 WP 7

 

Analysis of economic and institutional instruments with emphasis on effectiveness and equity
 

 
Objectives

The objectives of this work package are to:

  • Describe the socio-economic and financial environment regarding the provision of water services, through the identification of budget allocation mechanisms, budget constraints, and cost recovery mechanisms.
  • Evaluate the effects of existing economic instruments in the residential, agricultural, industrial, tourism and recreational sectors
  • Assess the financial sustainability of water resources systems in specific regions and/or on a national level
  • Identify, analyse and discuss alternative institutional instruments and economic measures for cross-sectoral integration as well as transparency in allocation of water service costs and decision-making.
 

 
Methodology - Work Description
WP 7 will analyse the current framework in which economic instruments are applied, concentrating on the provision of incentives, cost recovery and transparency in the allocation of costs and establishment of water charges. Alternative institutional instruments for a more efficient and equitable governance of water systems will be examined against the indicators identified in WP 4 and the typology of WP 6. Work undertaken is broken down in two major tasks:
  • Task 7.1, which will identify and analyse currently applied economic instruments in the residential, agricultural, tourism and recreational sectors, focusing mainly on long-run sustainability goals with regard to environmental, economic and social objectives in water use and service provision.
  • Task 7.2 will undertake an analysis of alternative institutional instruments and participatory processes (e.g. contractual relationships, voluntary agreements, joint planning schemes), and economic measures. These options will be qualitatively analysed in order to form a proposal for measures needed to support long-term systematic planning and management of competing demands between sectors.

The work undertaken will take into account the existing institutional structures and the needs for innovation identified during the first Phase of the Coordination Action (e.g. alternative mechanisms for the equitable allocation of costs and for increasing transparency and public participation in decision-making). From previous national and research experiences, alternative mechanisms for accounting subsidies required for social objectives will be identified. Care will be taken so that local social and political conditions are taken into account.

 
 
 WP Deliverables

The range of currently applied economic instruments (June 2008, Available for download)

Alternative institutional and economic instruments towards a more equitable and efficient water allocation and management  (June 2008, Available for download)

 

 
 Expected Results

Level of application and effectiveness of currently applied economic instruments.

Identification of alternative economic instruments for a more equitable, economically viable and transparent allocation of costs.

Alternative institutional options and mechanisms for promoting such instruments.