273
competences, defi ning regulatory rules, etc.) and the introduction of new steering
mechanisms (such as full cost recovery principle or water quotas for the agricultural sector) take many years or even decades. Therefore, there is the danger of
seeing one of these elements (e.g. the cost recovery principle) as the “magic pill”
that will solve all “ills” in water management alone.
6. Israel is an outstanding example of science, practice and government interacting closely together. Scientists play an important role in the water sector and in
agricultural organisations. Especially in agriculture, this is one of the major
reasons why technological pace has been so rapid. To increase effi ciency, in
particular for irrigation, this close system of interactions and relations between
science and practice can truly serve as role models in other countries.
7. Israel is the only country in the region where water management and water
policy are presented transparently. Anyone who would like information on
water uses and water prices can obtain it. The credibility of water policies is
enhanced by such an open and transparent information policy, even though
there might be space for improvement, especially with respect to the participation of the civil society in the formulation of the water policy.
8. Water prices and levies play an important role in Israeli water policy. If properly designed, they can set incentives for water savings and an effi cient use of
water. A water price reform can therefore be an important supplement for water
management strategies. However, in order to be successful in incentivising endusers’ behaviour, water prices and levies should address the full cost of water
(cost recovery principle) and the fair distribution of water prices among users.
9. With respect to cost recovery and allocative effi ciency, it is important that all
costs are included in the water price and that all sectors that use water are in fact
obliged to contribute to the water pricing scheme. Cost recovery should not only
be applied to a share of the user groups. However, in many countries, this will
cause problems: the agricultural sector is seen as fundamental for the welfare of
countries, leading to a deep-rooted need in societies to protect their agricultural
sector and an automatic rejection of burdens such as water prices or levies.
10. Social equity may also be seen as a major obstacle to introducing the costrecovery principle on the level of domestic end users. Even in economically
prosperous states such as Israel, water price policies are not disconnected from
the overall social debate. The greater the income disparities, the more diffi cult
will be the introduction of the cost recovery principle. Uniform tariff structures
might be fair to the consumers but impede the effi ciency of the local water utilities. This might only be a question for states with highly centralised water management institutions such as in Israel, but in many other regions under water
stress, such centralised institutions are in place. Specifi c solutions have to be
found to increase effi ciency of the water utilities under such conditions.
Open Access This chapter is distributed under the terms of the Creative Commons Attribution
Noncommercial License, which permits any noncommercial use, distribution, and reproduction in
any medium, provided the original author(s) and source are credited.
16 Technologies, Incentives and Cost Recovery: Is There an Israeli Role Model?
competences, defi ning regulatory rules, etc.) and the introduction of new steering
mechanisms (such as full cost recovery principle or water quotas for the agricultural sector) take many years or even decades. Therefore, there is the danger of
seeing one of these elements (e.g. the cost recovery principle) as the “magic pill”
that will solve all “ills” in water management alone.
6. Israel is an outstanding example of science, practice and government interacting closely together. Scientists play an important role in the water sector and in
agricultural organisations. Especially in agriculture, this is one of the major
reasons why technological pace has been so rapid. To increase effi ciency, in
particular for irrigation, this close system of interactions and relations between
science and practice can truly serve as role models in other countries.
7. Israel is the only country in the region where water management and water
policy are presented transparently. Anyone who would like information on
water uses and water prices can obtain it. The credibility of water policies is
enhanced by such an open and transparent information policy, even though
there might be space for improvement, especially with respect to the participation of the civil society in the formulation of the water policy.
8. Water prices and levies play an important role in Israeli water policy. If properly designed, they can set incentives for water savings and an effi cient use of
water. A water price reform can therefore be an important supplement for water
management strategies. However, in order to be successful in incentivising endusers’ behaviour, water prices and levies should address the full cost of water
(cost recovery principle) and the fair distribution of water prices among users.
9. With respect to cost recovery and allocative effi ciency, it is important that all
costs are included in the water price and that all sectors that use water are in fact
obliged to contribute to the water pricing scheme. Cost recovery should not only
be applied to a share of the user groups. However, in many countries, this will
cause problems: the agricultural sector is seen as fundamental for the welfare of
countries, leading to a deep-rooted need in societies to protect their agricultural
sector and an automatic rejection of burdens such as water prices or levies.
10. Social equity may also be seen as a major obstacle to introducing the costrecovery principle on the level of domestic end users. Even in economically
prosperous states such as Israel, water price policies are not disconnected from
the overall social debate. The greater the income disparities, the more diffi cult
will be the introduction of the cost recovery principle. Uniform tariff structures
might be fair to the consumers but impede the effi ciency of the local water utilities. This might only be a question for states with highly centralised water management institutions such as in Israel, but in many other regions under water
stress, such centralised institutions are in place. Specifi c solutions have to be
found to increase effi ciency of the water utilities under such conditions.
Open Access This chapter is distributed under the terms of the Creative Commons Attribution
Noncommercial License, which permits any noncommercial use, distribution, and reproduction in
any medium, provided the original author(s) and source are credited.
16 Technologies, Incentives and Cost Recovery: Is There an Israeli Role Model?