Significance and state of affairs of groundwater economics in the governance of transboundary aquifers
The International Groundwater Resources Assessment Centre (IGRAC) released a report linking the economics of groundwater to management and policy decisions. The report focuses on transboundary aquifers and their valuation. Overall, the report notes that the ecosystem services provided by aquifers, including the provision of drinking water and maintenance of water cycles, are often undervalued, which leads, in many cases, to unsustainable use. On the other hand, the report states that the valuation of groundwater ecosystem services can facilitate the analysis of tradeoffs between uses and users as well as incentivize sustainable use. The report also highlights a number of challenges in conducting valuations for groundwater, in particular the lack of data concerning site-specific aquifer benefits and the complexity of groundwater systems. The report further cites the lack of capacity and financial resources and mistrust in economic assessments as additional barriers to economic valuation studies. As such, the report calls for targeted research on groundwater benefits, better communication of economic concepts to policy makers and a holistic approach to valuation that considers all stakeholder groups.