Potentialities of water charge in the management of Brazilian water resources

Abstract

We investigated the application of economic instruments in the management of Brazilian water resources as mechanisms to stimulate the rational use of water and to recognise its economic value. We analysed water-charge scenarios at the national and international levels as a methodology to provide an economic estimate of environmental services related to water resources. Through bibliographical and documentary research, we identified the economic instruments applied to Brazilian water-resource management, describing the methodologies and values used Brazilian water charges and in some member states of the Organization for Economic Cooperation and Development. We identified how economic valuation methods of environmental resources could contribute to the improvement of water charges, considering the environmental services offered by a healthy river basin. In the Brazilian and the international scenarios, water charge methodologies include the volumetry of abstracted or consumed water, associating some elements that indicate the pollution level. The prices per cubic meter of water are still very low in all the scenarios. Environmental valuation techniques can be an essential tool for rethinking the methodologies and costs applied in water charges, increasing the potential of water’s rational use through economic instruments.

Keywords

• economic instruments
• environmental valuation
• water availability