Urban Water Economics

This chapter looks at 'environmental resource' issues in connection with water. Externalities as the third-party costs and benefits are analysed using water pollution as an applied example. This external cost is then examined in relation to the introduction of water pollution control. Natural resource economics (NRE) is applied with regards to water production and consumption in urban areas, which have increasing wants for water resources that are scarce. Sustainable development objectives are further introduced in the chapter as both a theme and as applied water examples in practice. Valuing the environment using the example of water as a resource is also demonstrated. International cooperation and agreement on water issues require economic thinking on both local and global scales, especially as water has less regard for the national administrative boundaries they cross.