flag Long abstract

Water prices for agriculture

Many governments in OECD countries have taken it for granted that there will always be sufficient water. Unfortunately, this is no longer true. A growing and wealthier global population means that more households, industries, and agricultural users are demanding and competing for the use of water. The pressure on water has been compounded by severe weather events, such as droughts in Australia and Spain or floods in the United States or Southeast Asia, and by climate change leading to changes in the frequency and location of rainfall.

The need to ensure access to water will test our ability as policymakers, farmers, industrial leaders and consumers to work together, both within and across countries to prevent water shortages and water conflict. At the OECD, we have made water a priority and we are working to identify best practices and develop policy proposals to assist countries in moving towards sustainable water management. As an economic organisation, we focus on economic tools and incentives to manage this valuable resource and promote the most efficient uses of water, including in agriculture.