Economics of Water Resources

Abstract

Economic and social changes that have occurred in Chile in recent decades have affected water management in multiple ways. In particular, its adoption of an export-oriented growth strategy since the 1980s, based on developing natural-resource intensive activities in the primary sector has led to significant increases in water demand. Decoupling of economic growth from water demands is, thus, a priority so as to not limit future economic growth and social development. In this chapter an overview of the water sector in the national economy and growth is presented. Then the economic value of water resources is covered, analyzing its apparent productivity, as well as the water-energy-food nexus. Finally, some conclusions are presented.