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Integrating recreational ecosystem service valuations into Israel's Water economy

Author

Listed:
  • Fleischer, Aliza
  • Gindin, Yadin
  • Tsur, Yacov

Abstract

This study examines how recreational freshwater ecosystem services (FESS) should influence water allocation policies within a comprehensive water economy model. We differentiate between FESS generated by flows and stocks, analyzing their effects on water allocation and pricing. We estimate the inverse demands for recreational FESS in Israel using household visitation data alongside water flow and stock information. These demands are then integrated into a comprehensive model of Israel's water economy to assess their impact on optimal water allocation. Our numerical simulations reveal that recreational FESS demands significantly affect optimal water allocation decisions. For instance, a 20 % increase in demand for flow-generated recreational FESS results in a 24 % reduction in stream flow diversion, a 13 % rise in water diversion from Lake Kinneret, and a 29 % increase in groundwater extraction from aquifers. By bridging the gap between ecological preservation and economic needs, our model paves the way for more holistic and effective water management practices worldwide.

Suggested Citation

  • Fleischer, Aliza & Gindin, Yadin & Tsur, Yacov, 2025. "Integrating recreational ecosystem service valuations into Israel's Water economy," Ecological Economics, Elsevier, vol. 227(C).
    • Handle: RePEc:eee:ecolec:v:227:y:2025:i:c:s092180092400288x
    DOI: 10.1016/j.ecolecon.2024.108391
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    References listed on IDEAS

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    1. de Groot, Rudolf & Brander, Luke & van der Ploeg, Sander & Costanza, Robert & Bernard, Florence & Braat, Leon & Christie, Mike & Crossman, Neville & Ghermandi, Andrea & Hein, Lars & Hussain, Salman & , 2012. "Global estimates of the value of ecosystems and their services in monetary units," Ecosystem Services, Elsevier, vol. 1(1), pages 50-61.
    2. Roumasset, James & Wada, Christopher A., 2013. "A dynamic approach to PES pricing and finance for interlinked ecosystem services: Watershed conservation and groundwater management," Ecological Economics, Elsevier, vol. 87(C), pages 24-33.
    3. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, January.
    4. Yacov Tsur, 2009. "On the Economics of Water Allocation and Pricing," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 513-536, September.
    5. Hackbart, Vivian C.S. & de Lima, Guilherme T.N.P. & dos Santos, Rozely F., 2017. "Theory and practice of water ecosystem services valuation: Where are we going?," Ecosystem Services, Elsevier, vol. 23(C), pages 218-227.
    6. Encarna Esteban & Elena Calvo & Jose Albiac, 2021. "Ecosystem Shifts: Implications for Groundwater Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(3), pages 483-510, July.
    7. Tsur, Yacov, 2020. "Optimal water pricing: Accounting for environmental externalities," Ecological Economics, Elsevier, vol. 170(C).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Freshwater ecosystem services; Water economy; Water allocation; Discrete choice; Non-market valuation;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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