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An analysis of the following aspects of water economics was undertaken: Water as an Economic and Social Good, Modes of Government Intervention, Water Scarcity in Economic Theory and Agricultural Water Management Changes, with the support of over 300 sources. Emphasis was placed on the connection with primary aspects of economics, in contrast to the usual applicative expositions found in water economics literature. This is a novel approach comparing international bodies’ definitions with economic theory at primary level which leads, upon occasion, to serious contradictions which were exhibited in broad lines. Furthermore, it compares the global implications of these definitions to the existing reality at country level, and a lack of bilateral consistency is exhibited. The uniform picture presented at global level is shown to become a non-uniform one at country level, where sharp variations in resources and availability form a competitive market between nations, and water-rich countries already possessing a competitive advantage are shown to attain a water-based comparative advantage as well. It is shown that although at country level water has a quasi-public good character with minimal private good market existence, this is achieved with the existence of a private goods market at international level via international trade in virtual water. A novel approach to management problems stemming from authority levels starting at global level and ending at farm level is analyzed and redressed by employing reality gap theory.

Water Economics: An In-Depth Analysis of the Connection of Blue Water with Some Primary Level Aspects of Economic Theory I