Global Review of Economic Instruments for Water Management in Latin America and the Caribbean. Executive Summary

The report contains an overview of the available international literature and information on the application of economic instruments in water management, with particular emphasis on the European experience. Economic instruments have gained particular attention in recent years as an important tool in environmental policy. Their advantages encompass the creation of incentives for behavioral change, the generation of revenue for financing further environmental investments, the promotion of technological innovation and additional effects such as the strengthening of institutional capacity and information availability. The paper presents a typology of economic instruments in water management in section 4 and associated examples of implementation from European Union (EU) and Organization of Economic Co-operation and Development (OECD) countries in section 5.