With an average of 1,600m(3) of water per person, which is 3 & times; lower than the EU average, Poland has a low water resource endowment (0-100km(3)). Poland presents a paradox as it remains one of the leading net exporters of agricultural virtual water in the EU. Thus, this study examines Poland's net virtual water exports (NVWEs) dynamics for major crops (1991-2021), using multiple regression to determine the significant drivers. Findings show that Poland was a net virtual water exporter of wheat and apples (120 and 195millionm(3)), but a net importer of maize and potatoes (-158 and -0.61millionm(3)). Potatoes (0.8USD/m(3)) and apples (0.6USD/m(3)) generated more economic value from rainwater than wheat (0.2USD/m(3)) and maize (0.3USD/m(3)). When producer prices, cropland area and rainfall increase, wheat's NVWE decreases (16million m(3)/1USD/tonne, 0.9millionm(3)/1 ha and 2.8millionm(3)/1mm), but it increases when direct and indirect N2O emissions increase (2,521 and 10,244millionm(3)/1kt). When GDP deflators increase, potatoes' NVWE decreases (1millionm(3)/1USD). When direct N2O emissions increase, maize's NVWE increases (1,267millionm(3)/1kt), but it decreases when indirect N2O emissions increase (5.7millionm(3)/1kt). When maximum temperature rises, apples NVWE increases (0.8millionm(3)/1 degrees C) but it decreases when cropland and GDP deflator increase (8.9millionm(3)/ha and 3.8millionm(3)/1USD). There is a need for integrated policies that promote water-efficient, emissions-conscious, climate-adaptive and stronger domestic staple crop production while balancing trade competitiveness with food and water security.
This study evaluates a smart meter pilot in Riyadh, Saudi Arabia that combines a dynamic lifeline tariff with app-based consumption feedback for residential customers in an arid, desalination dependent system. A randomised design assigns households with new ultrasonic meters to four arms (control, tariff only, feedback only, combined) and follows daily use and billing outcomes over twelve baseline and twelve intervention months. The dynamic tariff secures a basic lifeline volume tied to household size and raises marginal prices for discretionary use, while the app delivers real time usage, bill forecasts and social comparison messages. Estimates show average cuts in daily household consumption of 9 % under tariff only, 5 % under feedback only and 13 % under the combined package, with the strongest reductions during hot months. Typical monthly bills rise by 6 % for tariff only and 3 % for the combined arm, whereas feedback only leaves spending almost unchanged, while non-payment and long arrears fall by 10–25 %. City scale simulations indicate demand drops of 7–9 %, annual revenue gains around 210–220 million Saudi riyal and a fall in the expenditure Gini index from 0.32 to 0.28 under tariff plus feedback.
Achieving food security in sub-Saharan Africa (SSA) requires efficient resource management within agribusiness systems. This study analyzes the economic role of water productivity (WP) in linking agricultural production (AP) to food security. Using panel data from 45 countries (2004–2024), this research assesses how WP mediates this relationship, moderated by land availability and agricultural economic development. This evidence is crucial for designing cost-effective agricultural and water policies. The analysis reveals that a 1% increase in WP is associated with 0.791% higher food security, with this effect being significantly stronger in low-income countries and regions with greater agricultural land availability. However, the interaction between agricultural GDP (AgriGDP) share and WP is positive ([Formula: see text], [Formula: see text]), indicating that the association between WP and food security strengthens as the agricultural sector contributes more to the economy. Heterogeneity analysis confirms WP is most effective in low-income countries. Results suggest SSA’s positive WP effects reflect its irrigation expansion phase, where basic water control investments generate large gains without the rebound effects documented in more developed basins. Findings attest that WP shows a significant direct ([Formula: see text]) and indirect ([Formula: see text]) association with food security. These pathways are amplified by agricultural land ([Formula: see text]) and strengthened by a higher AgriGDP share interaction. Economic policies must integrate targeted water management with land tenure reforms and financial incentives, while also establishing caps on water extractions and basin-scale water accounting to prevent future rebound effects. These integrated strategies are essential for strengthening agribusiness, improving rural incomes, and achieving sustainable development in the region.
Twenty-five years ago, the European Water Framework Directive (WFD) was the first EU Directive to systematically integrate economic analysis and instruments as supporting tools intended to contribute to achieving its core environmental policy objectives: attaining good water status, reducing pollution, promoting sustainable use, and protecting and restoring aquatic ecosystems. As the original deadline for the WFD’s objectives (2027) approaches, discussions are underway on the lessons learnt and the future of EU water policy and management. This paper documents the experience of a group of water economists from a broad range of different European countries, who participated in the final adoption and first implementation steps of the economic provisions of the WFD. It analyses the role water economics has played in practice. Based on an overview of the lessons learned from their 25 years’ experience, this paper provides insights on how economics, as currently required by the WFD, could better support EU water policy and management, and what are the new and forthcoming challenges that water economics may need to respond to. The paper shows that over the past 25 years, the WFD’s implementation process has revealed a persistent structural mismatch between water policy — meant to be adaptive, integrative and cross-sectoral — and water management, which has increasingly become an end in itself. The emergence of the EU Green Deal and the Water Resilience Initiative offer a new context to revisit and revitalize the WFD’s original ambition — aligning ambitious water policy goals with supportive and coherent water management. In line with this, this paper argues for a strategic reform of the WFD’s rules, methods and processes to support more integrated, resilient and future-oriented water governance — one in which economic analysis becomes a meaningful input to decision-making.
Floods cause substantial disruptions to businesses resulting in both direct physical losses and business interruption damages. These impacts are expected to intensify due to climate change and socioeconomic development. Flood-induced business closures can trigger widespread economic repercussions, and flood insurance is a key instrument for mitigating these impacts. However, in many countries, a large protection gap limits the effectiveness of flood insurance in providing financial protection against flood impacts. Nonetheless, few studies have examined how insurance tailored to businesses can be designed to cope with increasing climate-related risk. This paper develops a partial equilibrium climate risk insurance model to evaluate flood insurance systems for businesses, incorporating both direct damage and business interruption insurance. Flood damages are estimated at the building level across seven economic sectors. Insurance systems are assessed based on premium levels, insurance demand, and incentives for risk-reducing measures. Using projections of flood risk through 2080, the model quantifies how premiums evolve under climate change and how these changes influence insurance demand. Applied to the Netherlands, the model reveals that the current voluntary flood insurance system results in an annual insurance gap exceeding €200 million, which could increase to more than €700 million by 2080. Reforms that reduce premiums and increase uptake can lower this gap by €130 million. The model further demonstrates that premium-based incentives can stimulate business-level flood adaptation, reducing total flood risk by 4.8%. These findings provide actionable guidance for policymakers and insurers on designing financially sustainable flood-insurance systems that enhance resilience under increasing climate risk.
