1. Economic Instruments for Water Management: Extra-Regional Experiences and their Applicability in Latin America and the Caribbean

1.1 Functions of Economic Instruments

1.1.1 Incentive Function
1.1.2 Fiscal and Financial Function
1.1.3 Soft Functions

1.2 A Taxonomy of Economic Instruments
1.2.1 Water Abstraction Taxes
1.2.2 Water Prices
1.2.3 Sewerage and Effluent Charges
1.2.4 Water Pollution Charge
1.2.5 Subsidies
1.2.6 Tradable Permits
1.2.7 Liability for Damage to Waters
1.2.8 Classification

1.3 Global Experiences with Economic Instruments
1.3.1 Water Abstraction Taxes
1.3.2 Water Prices
1.3.3 Prices and Charges in (Public) Sewage Collection and Treatment
1.3.4 Comparison of Water Bills
1.3.5 Prices and Charges in Industrial Effluent Disposal
1.3.6 Subsidies in the Water Sector
1.3.7 Tradable Permits in Water Resource Protection and Management
1.3.8 Liability and Risk Allocation
1.3.9 Financial Arrangements in Water User Associations
1.3.10 Concluding Remarks on Economic Instruments in Water Management in the EU

1.4 The European Water Framework Directive
1.4.1 The WATECO Guidance Document
1.4.2 The Economic Instruments in the WFD and their Rationale

1.5 Relevance for Latin American and Caribbean Countries
1.5.1 Challenges to the Implementation of Economic Instruments
1.5.2 Existing Experience with Economic Instruments in the Region
1.5.3 Relevant Factors for Successful Implementation of Economic Instruments
1.5.4 Discussions on the Relevance of EU Experience for Latin American and Caribbean Countries
1.5.5 Options for Inter-Regional Co-operation

1.6 Conclusions and Recommendations
1.6.1 Global Experience
1.6.2 Regional Experience
1.6.3 Lessons Learned

1.7 Bibliography

2 Case Study: The Colombian Water Tax

2.1 Normative, Institutional and Theoretical Factors
2.1.1 Institutional and legal Framework for Economic Instruments in Columbia
2.1.2 Background for Current Environmental Issues
2.1.3 Design of the Environmental Tax: Legal Aspects
2.1.4 Operational Aspects of the Environmental Tax

2.2 Implementation of the Instruments
2.2.1 Problems and Overall Issues
2.2.2 Positive Aspects and Successful Cases

2.3 Conclusions

2.4 Bibliography

3 Synthesis of Regional Experiences: From Theoretical to Practical Issues

3.1 Country Cases
3.1.1 France
3.1.2 Mexico
3.1.3 Brazil

3.2 Conclusions
3.2.1 Policy Phase
3.2.2 Design Phase
3.2.3 Implementation Phase

3.3 Recommendations

3.4 Bibliography

4 Discussion Note on Economic Instruments for Water Management in Latin America and the Caribbean