Study of the Application of Economic Instruments to the Water Resources Management in Critical Situations

Study of the Application of Economic Instruments to the Water Resources Management in Critical Situations

Water resource management is a complex problem to which an economic approach can make valuable contributions. However, the basis offered by economic theory is not necessarily part of the list of tools acquired by decision makers, engineers, hydrologists and other natural scientists active in discussions on how to better manage water extraction and consumption.

In this sense, this research introduces in a didactic and systematic way the main economic concepts that can offer an additional lens for the reader interested in analyzing problems associated with the way that individuals in different contexts manage a scarce resource such as water.

Thus, it seeks to deepen the understanding and the possibilities of applying economic instruments to the management of water resources in the Brazilian context, especially in situations of water scarcity. From the perspective of public policy design and analysis, different economic instruments emerge as alternatives to promote the allocation and more efficient and sustainable use of water resources.

The bases for the content presented are extensively developed over three chapters with which it was investigated:

  1. the theoretical relevance of the inclusion of economic instruments in the list of instruments for the management of water resources;
  2. how other countries have been using water rights markets in their contexts; and finally,
  3. how these instruments could be adopted in the Brazilian case.

Publications and Reports


Support for the Elaboration of Cost-Benefit Analysis of adaptation actions in the Hydrographic Basin and Evaluation of the Use of Economic Instruments in the Water Resources Menagement

Between 2016 and 2017, at the request of the National Water Agency (ANA), GVces evaluated the use of new economic instruments in the management of water resources based on theory, international experiences and a dialogue with the national reality. This work was commissioned by the National Water Agency (ANA) and developed by the Center for Sustainability Studies at FGV EAESP (FGVces) during 2016.

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Economic Instruments applied to the Water Resources Menagement: paths for its adoption in situations of conflict over the use of water in Brazil.

Summary for Decision Makers.

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