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New approaches in water resource economics

Susanne M. Scheierling's picture
In many parts of the world, changing demand and supply patterns are contributing to an increasing physical scarcity and competition for water resources. Historically, new demands have been met by developing additional supplies—with the incremental cost of water remaining relatively constant over time due to the ready availability of water development project sites to meet growing demands. As the water economy moves from an expansionary to a mature phase, incremental costs are sharply rising, and interdependencies among users and uses are greatly increasing. With this move, the issues to be addressed by water economists tend to become more pressing, broader and more complex. While in the expansionary phase structural or engineering approaches to water management tend to be the main focus, in a maturing water economy nonstructural or institutional options for solving water problems receive increasing attention. In particular, resource allocation and valuation issues move to the forefront of economic inquiry.

Can Singapore inspire Laos to build water-smart cities?

Henrike Brecht's picture
Photo: Songquan Deng/Flickr
Photo: Songquan Deng/Flickr
Singapore: the beautiful city state, famed for its lush gardens, splendid food, culturally diverse communities, and the cocktail Singapore Sling. I was there last week for the World Bank’s 2016 Urban Week. The event brought together leading city officials from all over the world and staff from international organizations. It was an excellent exchange on how to tackle urban planning in a sustainable and integrated way. One lesson that emerged from the gathering is that cities that are resilient to natural disasters are also more economically competitive. Singapore is itself a prime example of a city that has understood the importance of connecting disaster risk management, urban planning, and quality living.

World Water Day: Transforming lives through better water and jobs

Jennifer J. Sara's picture

The largest sphere represents
all of Earth's water. The next
smallest sphere represents the world's
liquid fresh water. The smallest
one represents fresh surface water
in all the lakes and rivers on the planet.
Source: US Geological Survey

Water covers 70% of Earth’s surface, but if you live in Sana’a, Sao Paolo, California, or the many other areas where drought or chronic water scarcity has affected daily life, you know that abundance can be relative.

This image from the US Geological Survey shows that only a tiny fraction of Earth’s water is the accessible freshwater we need to live, grow food, sustain the environment, and power our cities and jobs.

Growing cities and populations and a changing climate are placing unprecedented pressures on water. According to the World Economic Forum, water crises are among the top risks to global economic growth. For at least 650 million people, even the water they are able to find is unsafe.

But this also offers an opportunity to provide safer water and better manage our water resources for a more resilient future.

This year, #worldwaterday focuses on the connection between water and jobs, and these connections primarily fall under two categories: productivity and sustainability.

Can we really put a price on meeting the global targets on drinking-water and sanitation?

Guy Hutton's picture

When the Millennium Development Goals (MDGs) were signed, a commitment was made to deliver improved water and sanitation to half the unserved population. This ambitious target was met for water but not for sanitation, with 2.4 billion people still lacking improved sanitation in 2015. The first part of our new study, The Costs of Meeting the 2030 Sustainable Development Goal Targets on Drinking Water, Sanitation, and Hygiene, estimates the cost of finishing what was started as part of the MDG target.

The study found that globally current levels of financing are likely to cover the capital costs of achieving universal basic WASH by 2030. The global capital costs amount to $28.4 billion per year (range: $13.8 to $46.7 billion). However, despite this good news, the current allocations need to be redirected and there will need to be significantly greater spending on sanitation (accounting for 69% of the cost of basic universal WASH) and operations and maintenance, as well as in the most off-track countries which are mainly in sub-Saharan Africa and South Asia.

But this isn’t the full story.

SACOSAN VI: An opportunity for South Asian leaders to focus on sanitation and the Sustainable Development Goals

Junaid Kamal Ahmad's picture

The text below originally appeared in The Daily Star as part of the SACOSAN VI Supplement. The Daily Star is an English newspaper of Bangladesh.

SACOSAN VIThe 6th South Asian Conference on Sanitation (SACOSAN VI) is a historic milestone for South Asian governments. The conference reflects the efforts South Asia has made towards safe sanitation for all, but importantly, it signals the Region’s commitment to shift from the Millennium Development Goals (MDGs) to the more challenging platform of the Sustainable Development Goals (SDGs). This shift will require even greater leadership from the governments, more sustained partnership from the development community, and greater grass-root innovation. SACOSAN VI is the right moment for South Asia to concretely signal its commitment towards achieving SDG 6 – the Water and Sanitation Goals.

Where water and climate change meet

Water Communications's picture

This week, the 2015 Paris Climate Conference, or COP21, will gather countries that want to take action for the climate. A central topic of these discussions will focus on the intersection of water and climate change.

Combating climate change is everyone’s business. Reducing emissions and investing in renewable energy, improving city planning and building design standards, developing more efficient transportation, and reducing deforestation (among others) all play key roles in mitigating the effects of climate change. At the same time, countries, and industries, will also need to adapt to changes in the climate as they unfold. Since climate change will significantly increase the variability of rainfall, different parts of the world will become more vulnerable to floods or droughts. 

“Water scarcity and variability pose significant risks to all economic activities, including food and energy production, manufacturing and infrastructure development,“ said Laura Tuck, World Bank Group Vice President for Sustainable Development during a recent press conference at COP21. “Poor water management can exacerbate the effects of climate change on economic growth, but if water is managed well it can go a long way to neutralizing the negative impacts.”

Better together: Toilets and nutrition

Claire Chase's picture
​Studies show children grow taller and perform better
on cognitive tests in communities where residents have
access to improved sanitation and do not defecate
in the open. Photo credit: World Bank

Microfinance for water and sanitation: How one small loan makes a huge difference

John Ikeda's picture
Photo Credit: Water.org via Flickr under Creative Commons
Attribution-NonCommercial-ShareAlike 2.0 Generic license

This blog originally appeared on the The Consultative Group to Assist the Poor (CGAP) Microfinance Blog. Housed at the World Bank, CGAP is a global partnership of 34 leading organizations that seek to advance financial inclusion. The blog highlights a recent study which concludes that water and sanitation microfinance can be good for Microfinance Institutions, good for the development community, and -most importantly- good for borrowers and their families.

Government could cheaply encourage citizens to save water by doing this

Laura De Castro Zoratto's picture
This blog originally appeared on the World Bank's Governance for Development Blog, which informs and stimulates debate on how governments can help end poverty and boost shared prosperity. The blog highlights a recent study which shows that raising awareness about how much water individuals consume, and enabling them to compare their consumption with that of peers, can go a long way in helping to change behavior in the use of this finite resource.

 
Photo credit: Curt Carnemark / World Bank

Crises in access to water are making headlines around the world. Among difficult policy pathways to respond, convincing people to change their behavior and reduce their consumption can be one of the hardest.

This post gives us a promising picture from Belén, a small town in Costa Rica.  Of Belén’s 21,633 inhabitants, 99.3% have access to water service, but shortages are anticipated by 2030. Our recent study demonstrated that the government could cheaply encourage citizens to save water by enabling them to compare their consumption with that of their peers.

Getting the water sector in the Western Balkans ready for EU membership

Angelika Heider's picture
The Vodovod Slavonski Brod, an
​EU-financed wastewater treatment plant in Croatia.
Photo credit: World Bank Croatia

​It would be my first time in Croatia, so naturally I was excited to be part of the team that organized a Danube Water Program workshop on EU Cross Support in the Water Sector in Zagreb September 28-29.

Initially, the reasons behind the World Bank’s support of this workshop aimed at facilitating the alignment of national water legislations with the European Union (EU) acquis were not obvious to me. Given, however, that almost all of the countries covered under the Danube Water Program find themselves somewhere on the path towards EU membership or candidacy, it made sense for some of them to convene.

And who could possibly be more suitable to host such an event than the EU’s youngest member state, Croatia?​

So at the end of September, in a small and – despite the suits rather informal setting at the local World Bank office, around 20 people from several line ministries and water works gathered in a conference room (with a great view of a somewhat rainy Zagreb) for a two-day event. Representatives from Albania, Bosnia and Herzegovina, Kosovo, Montenegro and Serbia came together to discuss potential issues and hurdles that they might encounter in the transposition of EU water laws into their national legal frameworks.​

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