266
water-pricing schemes have been implemented, there is a strong push, not only for
reinvestments but also for extensions and “modernisations” of such infrastructures.
The price structure for water for agriculture differs according to the quality of the
water used (Fig. 16.7 ). It is separated into drinking water quality, water coming
from wastewater treatment plants, effl uents and brackish water. The price for drinking water is set according to the costs of production, but does not include the sewage
treatment component, subsidies and costs for the purchase of desalinated water.
Therefore there is a cross-subsidy from the domestic to the agricultural water sector.
Compared with the price increases for the industrial and the domestic sector, the
price increases for the agricultural sector were quite moderate. Within the agricultural sector, the share of energy prices caused the highest increases for agricultural
inputs; water price increases played a much less important role (Fig. 16.8 ).
Besides water pricing instruments, which are related to end users, water levies
for extraction are fi xed in order to charge the value of water at the source. Those
levies apply mainly to those who do not purchase their water from Mekorot but
extract it by themselves. The levies are directly paid to the State Treasury. Changes
in levies are suggested by the Israel Water Authority and subject to approval by the
Knesset Finance Committee (Kislev 2011 ). The levy is set as a purely fi scal burden
as it does not consider the characteristics of the services supplied by the ecosystem
(Kedmi 2005 ). However, the calculation for the levies differs between different
purposes: water for agriculture and water for domestic and industrial uses. The
allocation is determined for each producer licence (Israel Water Authority). The
0
0.5
1
1.5
2
2.5
3
3.5
2007
2008
2009
2010
2011
2012
2013
2014
Water Price [NIS/m
3
]
Year
Prices Agricultural Water Uses for Different
Qualitites (NIS/m 3 )
effluents
waste water
brackish
drinking water
Fig. 16.7 Prices for agricultural water uses according to different qualities (NIS/m
3 ). Prices were
approximated (Data source: (Israel Water Authority 2014b , c ), Israel Central Bureau of Statistics
( 2012 ))
C. Bismuth et al.
water-pricing schemes have been implemented, there is a strong push, not only for
reinvestments but also for extensions and “modernisations” of such infrastructures.
The price structure for water for agriculture differs according to the quality of the
water used (Fig. 16.7 ). It is separated into drinking water quality, water coming
from wastewater treatment plants, effl uents and brackish water. The price for drinking water is set according to the costs of production, but does not include the sewage
treatment component, subsidies and costs for the purchase of desalinated water.
Therefore there is a cross-subsidy from the domestic to the agricultural water sector.
Compared with the price increases for the industrial and the domestic sector, the
price increases for the agricultural sector were quite moderate. Within the agricultural sector, the share of energy prices caused the highest increases for agricultural
inputs; water price increases played a much less important role (Fig. 16.8 ).
Besides water pricing instruments, which are related to end users, water levies
for extraction are fi xed in order to charge the value of water at the source. Those
levies apply mainly to those who do not purchase their water from Mekorot but
extract it by themselves. The levies are directly paid to the State Treasury. Changes
in levies are suggested by the Israel Water Authority and subject to approval by the
Knesset Finance Committee (Kislev 2011 ). The levy is set as a purely fi scal burden
as it does not consider the characteristics of the services supplied by the ecosystem
(Kedmi 2005 ). However, the calculation for the levies differs between different
purposes: water for agriculture and water for domestic and industrial uses. The
allocation is determined for each producer licence (Israel Water Authority). The
0
0.5
1
1.5
2
2.5
3
3.5
2007
2008
2009
2010
2011
2012
2013
2014
Water Price [NIS/m
3
]
Year
Prices Agricultural Water Uses for Different
Qualitites (NIS/m 3 )
effluents
waste water
brackish
drinking water
Fig. 16.7 Prices for agricultural water uses according to different qualities (NIS/m
3 ). Prices were
approximated (Data source: (Israel Water Authority 2014b , c ), Israel Central Bureau of Statistics
( 2012 ))
C. Bismuth et al.