International Water Markets in the Context of the Green Transition: Regulatory Mechanisms for Managing Water Pollution

The purpose of the article is to study the potential of international water markets in facilitating the green transition, which involves analyzing regulatory mechanisms for managing water pollution and rights to use them. The study is aimed at a comprehensive analysis of modern water markets, their structure, mechanisms of functioning and role in water resources management in the context of growing water shortages in the world. The work uses systems analysis methods to study the structure of water markets, a comparative analysis of international experience in regulating water resources, as well as a conceptual approach to studying the phenomenon of “virtual water” in international trade. The main types of water markets are identified: the market for water protection technologies, the market for water-saving technologies, the market for water-containing products and the international water market. The concept of “virtual water” is analyzed as a tool for saving water resources through trade in water-containing products, especially agricultural products. The mechanisms of functioning of the market for trading “pollution rights” and the market for water resource use rights are considered. The international practice of environmental liability for water resource pollution in OECD countries, the USA, Germany and Finland is studied. The role of alternative water sources (reuse of urban wastewater, desalination of seawater, rainwater harvesting) for industrial needs has been determined. For the first time, various types of water markets and their impact on the efficiency of water use have been comprehensively systematized. Theoretical principles for the functioning of the “virtual water” market as a mechanism for international redistribution of water resources have been developed. Approaches to analyzing the economic efficiency of market mechanisms for water resources management have been improved. The results of the study can be used to develop national water policy, improve water resource pricing mechanisms, and create effective water resources management systems based on market principles. The proposed approaches will contribute to optimizing water use in conditions of growing water shortages and increasing the efficiency of international cooperation in the field of water resources.