The economic analysis

The economic analysis constitutes a decision support tool for integrated water resource management. It pursues to incorporate systematically economic considerations into water planning (efficient water use, polluters pay principle and adequate contribution of the users to the cost of the water services) and it seeks to make economic development compatible with the improvement and protection of water resources. Water economics provides information for public participation and consultation and assist political judgment on many aspects: for water allocation, by taking into account the analysis of the economic significance of the water uses; for the prioritization of the measures, by taking into account the trends in water supply and demand; for the selection of the measures, leading to those that allow to attain the environmental objectives at the lowest cost; for the assessment on exemptions from the environmental objectives, time derogation or less stringent objectives.

Compared the country’s production structure, the relative importance of the agricultural sector is higher in Büyük Menderes and Konya unlike the services sector. Among the four pilot river basins, Meriç Ergene and Susurluk are the most industrialized, above the national average.

Consistent with the socio-economic profile of the river basins, agriculture water consumption is above average in Konya and Büyük Menderes, while industrial water consumption stands above average in Meriç-Ergene. As for Susurluk, two particularities may be mentioned: the significance of the thermal plants in the industrial water consumption and the relevance of the household water use, being the river basin with the highest population density (117 inhabitants /km2).

Most of population is located in big cities, a trend that is set to continue. By 2030 population of the four basins is estimated to increase by 1.7 million people; this will involve satisfying an additional water demand of 324 hm3/year.

Increasing agricultural water demands in Büyük Menderes and Konya defy the sustainability of the water resources. A considerable portion of the agricultural production in Konya is dependent on overexploited groundwaters.

There are big differences in domestic water tariffs among districts, especially in residential areas. Average monthly payments for water services span between 27 TL and 44 TL per connection (household) for urban users, and 8 TL and 11 TL for the rural ones; this represents between 1.1% and 1.7% of the household disposable income. Blocked tariffs are frequently in place for water supply service, whereas flat rates are for wastewater.

In the four pilot basins, cost recovery ratios of the urban water services range between 49% and 85% in average for the period 2005-2014. River basins with a higher coverage ratio of water services show a greater investment effort (percent of gross value added). Meriç Ergene presents the lowest investment effort, the greatest challenge on the sanitation coverage and the highest cost recovery ratio

María del Tránsito SÁNCHEZ

This Publication has been produced with the financial assistance of the European Union. The contents of this publication are the sole responsibility of the Consortium led by Tragsatec and can in no way be taken to reflect the views of the European Union.