Economic Evaluation of Water

Agriculture is the principal consumer of water and any price change would affect its profitability, even though this could appear to be a vicious circle since the low cost of water induces a lower degree of concern and produces greater inefficiency in its use.

The transaction of water is intimately associated with its value, and its value to its availability and the benefits produced. Flexibility in water transfers should be a mechanism allowing for a better use of this resource in agriculture.

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