Characterizing the Economic Abundance of Water Through a Theoretical and Empirical Framework
Abstract
Water is a naturally heterogeneous good. It is valued, priced, and provided differently around the world. Physical abundance is generally represented by the absolute quantity of a resource available, typically relative to the size of a population or the current rate of consumption. Economic abundance is typically measured by price of some form and captures what the average person must give up to obtain a certain quantity of the resource, or more precisely, a certain benefit from the resource. This project examines empirical practices of water provision and characterizes economic abundance through a theoretical model of four primary expected provision mechanisms. This project demonstrates that characterizing the economic abundance of water is much more complex than for other goods and natural resources. Such a characterization must necessarily incorporate widely varying provision mechanisms as well as water quality and accessibility in addition to affordability. Our analysis supports a qualified conclusion of increasing global economic abundance of water, and we discuss the implications of this finding in the context of population growth, climate change, technological advancement and increased investment in international economic development.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 12, 2021
- Accession Number
- AD1149688
Entities
People
- Logan R. Williams
Organizations
- United States Naval Academy