Population growth and rising living standards, on the one hand, and changing climate, on the other hand, have exacerbated water scarcity worldwide. To address this problem, policymakers need to take a wide view of the water economy – a complex structure involving environmental, social, economic, legal, and institutional aspects. A coherent water policy must look at the water economy as a whole and apply a comprehensive approach to policy interventions. Written by two of the world's leading scholars on economics of water, this is the first graduate-level textbook on the topic. The book discusses water resource management within a comprehensive framework that integrates the different, yet highly entwined, elements of a water economy. It follows the steps needed to develop a well-designed set of policies based on detailed analyses of intervention measures, using multi-sectoral and economy-wide examples from a variety of locations and situations around the world.

'A comprehensive, integrated approach for evaluating and improving the management of scarce water resources across the globe. The fundamental principles of economics, critical role of institutions, and legal norms restricting water allocation policies are insightfully represented. I am completely persuaded by the authors’ modular structure of the advanced framework and its implications for the future of water resource management challenges.'

Gordon Rausser - University of California, Berkeley

'A clear, precise introduction to the challenges of managing common pool resources. This book's lessons go beyond water, covering dynamic resource allocation and management and combining technical rigor with insightful analysis of real world challenges.'

David Zilberman - University of California, Berkeley

'The first and most outstanding book that clearly explains water economy through economic theories and approaches. Anyone who is interested in water related economic and policy issues should read this important book.'

Jinxia Wang - Peking University

'Economics provides an analytical lens for understanding the difficulties for managing water equitably, efficiently and sustainably. This book presents advances in water economics and how this field can prescribe policy designs and offer applicable lessons. A canonical guide for intermediate students and scholars looking for basic theory foundations.'

Alberto Garrido - Universidad Politécnica de Madrid, Spain

'This book develops a water economy edifice, which breaks through the traditional methodology to incorporate natural, social, and economic aspects, as well as hydrological and hydraulic factors, into the analysis framework. This brings the study of the economy of water resources into a more inclusive system.'

Dajun Shen - Renmin University of China

'… a lucid and mathematically rigorous account of the many dimensions of water management. Recommended.'

A. A. Batabyal Source: Choice Connect