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Symposium 2011

Solution for Water Scarcity and Virtual Water Trade

The Challenge

Two fifths of the world’s population faces water shortages. During the coming decades, water scarcity is expected to rise as a result of a rapid increase in the demand for water due to population gr ...

Two fifths of the world’s population faces water shortages. During the coming decades, water scarcity is expected to rise as a result of a rapid increase in the demand for water due to population growth, urbanization and increasing consumption of water per capita. In addition, climate change is expected to influence the supply of water, modifying the regional distribution of freshwater resources.

Strategically differentiate demand and supply management strategies.

Markets and governments play different roles in water supply and water demand. For efficient outcomes, it is essential to differentiate. While demand management strategies influence water allocation and use, supply management strategies guarantee water reliability. The design and implementation of water policies have to consider both sides.

Water supply often needs more government regulation—for example, a sustainable and conjunctive management of ground and surface water resources. Water demand can, to a large extent, be governed by markets if there are appropriate pricing schemes.

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