Environment in emerging and transition economies


Facilitating the Reform of Economic Instruments for Water Management in Georgia

This study assesses the use of economic instruments for water resources management in Georgia and considers options for reform following the 2014 signature of an Association Agreement with the EU committing to alignment with the EU’s Water Framework Directive. This includes the systematic use of economic instruments, including water pricing, to recover the cost of water services provided to households, industry and farmers, among other measures. Three main economic instruments are recommended in this study: 1) the introduction of a licensing regime and charges for both surface water and groundwater abstraction, 2) the restoration of a licencing and charging regime for all forms of water pollution, and 3) more rigorous enforcement of these measures, including more active monitoring and higher fines for offenders. Implementing these measures will be greatly facilitated by the enactment of the new Water Law now being examined by the government of Georgia.

Published on March 15, 2018

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Acronyms and abbreviations
Executive summary
Recommendations for economic instruments for water management in Georgia
Water problems and management framework in Georgia
Overview of economic instruments for water management in Georgia
Options for economic instruments for water management in Georgia
Evaluation and ranking of options for economic instruments reform
Costs of water resource management in Armenia and South Africa
International experience with water abstraction and pollution charge
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