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E-book The Economics of Water : Rules and Institutions
Water is not only the beginning of all things, as the old Greeks had alreadyrealized, but without water, no life on earth is possible, and clean water is also aprecondition for any form of sustainable development. There is enough availablefreshwater on earth (about 91,000 km3) to supply every individual on earth (about7.5 billion in 2020) approx. 12,000l, more than enough to live decently. However, dueto natural and man-made idiosyncracies, clean freshwater and sanitation (which wedo not cover in-depth in this book) are scarce, and thus decisions need to be taken onthe production, treatment, and distribution of water, given underlying technical andsocioeconomic conditions. Water needs to be managed efficiently, both with respectto the growing scarcity of resources, as a natural endowment that is indispensablefor the survival of mankind, but also with respect to the variety of eco-servicesit delivers. In fact, water is a multifunctional resource that provides people withpotable water, secures landscapes in different climate zones and functions as a sinkof pollutants emanating from human activities. Thus, a comprehensive approach isrequired, including a technical understanding of the basic hydrological principles,different economic allocation rules, but also the institutional framing of the use of water.
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