Water pricing and markets: Principles, practices and proposals

Date

2025

Authors

Wheeler, S.A.
Nauges, C.
Grafton, R.Q.

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Journal article

Citation

Applied Economic Perspectives and Policy, 2025; 47(2):487-514

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Sarah Ann Wheeler, Céline Nauges, R. Quentin Grafton

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Abstract

The allocation of water across space and time is a key challenge of water governance, with demand and supply often not well matched over time and place. Best practice water pricing and markets may promote water conservation, yet their application is limited. We highlight the governance principles needed for best practice water pricing and water markets, describe differences across regions, and provide six key water demand governance recommendations for both Global North and Global South countries.

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© 2025 The Author(s). This is an open access article under the terms of the Creative Commons Attribution-NonCommercial License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited and is not used for commercial purposes.

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