This review analyzes water pricing and hydro-economic models in water management, indicating the importance of integrating economic and social factors for effective policy-making.
Key Points
The aim is to evaluate the effectiveness of water pricing and hydro-economic models in water resource management.
Conducted a critical review of existing literature on water pricing and hydro-economic models.
Analyzed various pricing policies applied in Europe and China.
Utilized a bibliometric methodology to identify trends and gaps in the literature.
Water pricing is shown to influence sectoral consumption and enhance water sustainability.
Economic instruments can potentially reduce water consumption and promote efficiency.
Identified challenges include demand elasticity and the need for social acceptance for successful implementation.