Policy Applications of NCA

Urvashi Narain, Senior Environmental Economist

Agriculture and Environmental Services Department, The World BankIstanbul, June 29, 2014

NETHERLANDSWater Profiles: What are the most important users of water?Is their water productivity improving between 2003 and 2010?(liter/ euro of sector value-added)

Source: CBS

Murray-Darling River Basin AustraliaBenefits from Water Pricing Refor

Based on historical water use & price data, simulated impacton GDP of doubling water prices and the expected increases in wateruse efficiency (WUE) of 1-2%

1% increase WUE

2% increase WUE

Irrigated agriculture -24 78

Dryland agriculture -51 -112

Food and fibre processing 44 97

Other industries 262 410

Total impact on GDP 253 521

Increase in GDP, A$million

BOSTWANAAre scarce water resources allocated efficiently?

Agricu

lture

Mining

Manufac

turing

Wate

r + el

ectric

ity

Constructi

onTra

de

Hotels a

nd resta

urants

Transp

ort & co

mmunication

Insuran

ce, ban

king &

business

Socia

l &pers

onal ser

vices

Govern

ment

Household use

others0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

% share in GDP, employment & water use, 2011

% of GDP% of formal employment% of water consumption

Source: DWA

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