Water Pricing Reforms: Issues and Challenges of Implementation

Abstract

Water pricing has to consider that water resources are scarce and that incentives and economic principles have to be implemented with the objective of improving allocation and to enhance quality. Pricing mechanisms are not objectives by themselves, but a means to an end, the end being a more efficient water resources management, including the provision of water services. Since the implementation of water pricing reforms has proved to be difficult, it should be considered within a broad perspective of local and regional socio-economic, institutional, political, legal, ecological and cultural characteristics.

Notes

The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors and should not be attributed in any manner to the World Bank, or its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent.

For discussions on specific country experiences, see Dinar & Subramanian, 1997.

Water markets are not discussed in this paper. For an overview of World Bank experience on this matter see Simpson & Ringskog (1997); Dinar et al. (1997); Briscoe et al. (1998);