The water prices that implement the optimal water policy are derived. These prices contain the supply cost components and two shadow price terms: one reflecting the in situ value of natural water and the other representing the scarcity of recycled water. The former accounts for the scarcity,...

The state of water resources and the need for a comprehensive perspective -- The water economy -- Supply costs, demands and benefits -- Optimal water policy -- Water regulation -- Conjunctive use -- Case studies of regulatory interventions -- Economy-wide considerations of water management --...

I present the economic principles of water allocation and pricing in a schematic water economy representing a wide range of real-world situations. The water policy has inter- and intratemporal components. The former determines extractions from the naturally replenished sources, given the...

"The chapter highlights the structure of the book, explains its approach and summarizes its main message. Increased water scarcity intensifies the tradeoffs inherent in allocating water to competing uses and turns the policy challenge of managing water resources ever more crucial. The book...