In addition to exacerbating water scarcity, climate change is expected to lead to an increase in the frequency and magnitude of droughts. During an extreme water shortage, economic agents may find it difficult to modify their production structure immediately, and will therefore try to maintain...

Focuses on methodological advances within the field of water resource economics and shows how these advances can be applied to the economics of water issues. This book identifies five areas of particular importance - asymmetric information and game theory, uncertainty, space, water quality, and...