Tomorrow’s World Requires a Sustainable Hydro-Economics Concept
N. Ç. Yıldız1, D. Yıldız2, D. Yıldız3
1Istanbul University, 34126 Beyazıt, Istanbul, Turkey
2Department of Statistics, Yıldız Technical University, Davutpaşa Street 34220 Esenler, Istanbul, Turkey
3Director of Hydropolitics Association, Güfte Sok. 8/9 O6680 Kavaklıdere, Ankara, Turkey
1-3E-mail address: nurcak@istanbul.edu.tr , dyildiz@yildiz.edu.tr , dyildiz@hidropolitikakademi.org
ABSTRACT
It is clear that humanbeings has destroyed the nature since the last quarter of the 19 th Century with start of industrial revaluation .In the beginning of the 21st century we faced extraordinary natural disasters as well as rainfall and temperature changes, rapid ice melting in different part of the world. All these mostly have occurred under the effect of climate change and forced a paradigm shift from demand or supply oriented harsh water development to use current water resources as efficient as possible. This logical approach is getting larger and larger as the years go by. Therefore near future water management concept will shift from building new and more water supply systems to better operating existing ones. The variation of water values in time and space has increasingly motivated efforts to address water scarcity and reduce water conflicts. Hydro-economic models represent spatially distributed water resource systems, infrastructure, management options and economic values in an integrated manner. In these tools water allocations and management are either driven by the economic value of water or economically evaluated to provide policy insights and reveal opportunities for better management. A central concept is that water demands are not fixed requirements but rather functions where quantities of water use at different times have varying total and marginal economic values. The 2015 World Economic Forum Global Risks Report ranked water as the number one risk factor. All these other sources of stress on water systems will be affected and/or exacerbated by climate change. This paper reviews the vital role of Hydro-Economics concept in a sustainable water management that will implement full cost recovery policy under the effect of climate change. It also focuses on the growing problems of allocation of water resources among competitive uses
Keywords: Hydro-economics; water economics; water future; water value; water risk; water price
1. INTRODUCTION
Objective of this article is to draw attention on the financing challenge for the water and sanitation sector reviewing the global experience in financing mechanisms. Over the past years, the water and sanitation sector has recognized the increasing importance of finance, though an important change in approach has occurred. During the 1990s, most discussion on financing the sector focused on service provision, particularly assessing the possibility of meeting the cost through public funds versus alternative resources (10). Private sector investments were assumed to carry the burden within the sector; but this has generally not happened, resulting in widening financing gaps. It is now well recognized that financing water and sanitation is not just an issue of mobilizing the required volume of investment. Equally important issue is supplying water for all with affordable price. Finally, effective, efficient, and transparent use of water resources and supply it affordable price have gained recognition. This is the financing challenge for the water and sanitation sector in the new millennium.
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