Specifications for the analysis, coding and costing of water uses

In this report, the economic aspects of cost analysis and water pricing are described in detail. A classification of water uses and economic instruments applied in demand management and pollution control is given. Marginal cost pricing is analyzed and related to the "right" water price. Methodologies are provided for the estimation of full cost components (financial, environmental and resource cost). Water policies, in EU as well as worldwide, are investigated and structures-levels of water pricing are discussed regarding the main economical sectors of water use (domestic, industrial and agricultural). Finally, useful conclusions for the implementation of effective water policy-pricing in practice are extracted.