The report "Global Review of Economic Instruments for Water Management in Latin America" provides practical examples of experience with economic instruments in water management, mainly in European and other OECD countries. It assists in identifying appropriate instruments for the Latin American context and demonstrates the constraints and impediments to their introduction.

The Inter-American Development Bank issued a publication of this report.

Background

Economic instruments have gained particular attention in recent years as an important tool for reinforcing and implementing environmental legislation, while simultaneously contributing to sustainable development. Their advantages, when well adapted to the specific conditions of each case, encompass the provision of incentives for behavioural change, the generation of revenue for financing further environmental investments, the promotion of technological innovation, and the reduction of pollution at least cost to society as a whole.

Project Objectives

This report has been initiated by the Inter-American Development Bank to support discussions among participants in the Regional Policy Dialogue of Latin American countries on the importance and applicability of economic instruments in the context of water management. The paper first gives an introduction to the possible uses of economic instruments in the field of water management. It then provides practical examples of experience with economic instruments in water management, mainly in European and other OECD countries. Furthermore, it assists in identifying appropriate instruments in the Latin American context and finally demonstrates the constraints and impediments to their introduction.

At the Technical Seminar on the Application of Economic Instruments for Water Management on 25/26 February 2003 at the Inter-American Development Bank in Washington, D.C., R. Andreas Kraemer presented the report to the Regional Policy Dialogue of Vice Environmental Ministers of Latin American countries.

Downloads:

• Ecologic Final report "Global Review of Economic Instruments for Water Management in Latin America" [pdf, 279 KB, English] and its English summary [pdf, 41 KB] as well as a Spanish summary [pdf, 50 KB].