Economic Value of Water: Estimation
Water Law and Economics
Published Online: 15 APR 2005
Copyright © 2005 by John Wiley & Sons, Inc.
How to Cite
Ramírez-Vallejo, J. 2005. Economic Value of Water: Estimation. Water Encyclopedia. 605–612.
- Published Online: 15 APR 2005
The global awareness of the vital role water plays in sustainable national development is increasing. Water is vital for sustaining life on the earth. It is crucial for economic and social development, including energy production, agriculture, and domestic and industrial water supplies. Therefore, each unit of water should be used efficiently, equitably, and soundly. The economic value that water generates should be given due attention, when apportioning scarce water resources among competing uses.
Water is often regarded as a naturally occurring, freely available commodity. However, its supply, especially in an unpolluted state, is often limited compared to the demands placed upon it. Hence, water is both a constraint on and an essential input of economic activity, and decisions are required to allocate it among competing uses.