Social equity

In the context of water resources, social equity implies that all user groups have fair and reasonable access to the nation’s scarce water resources, and that the allocation of water resources facilitates universal and affordable access to a basic water supply.

Ecological sustainability

This concept captures the view that there is a need to treat ecological protection and continuing economic growth as mutually compatible rather than as necessarily conflicting objectives.

Economic efficiency

A condition that is achieved when resources are used over a given period of time in such a way as to make it impossible to increase the welfare of any person without harming another.

Economic value

The cost that represents the scarcity value of a good which would prevail in competitive markets.

Economics

Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses.

Externalities

are essentially activities whose full, cost or benefit is not incorporated into an economic decision; hence they lead to sub-optimal social allocation.

Market approach

This is an accepted means through which buyers and sellers can communicate and trade at mutually agreed terms.

Market clearance

A condition that is attained when the price of the good traded adjusts so that the quantity buyers wish to buy is equal to the quantity which sellers wish to supply.

Opportunity costs

The costs of alternatives forgone by using scarce resources in a particular manner.

Polluter pays principle

A principle that ensures that a charge per unit of pollution emitted into the ecosystem is charged to those responsible for such pollution in order to internalise the cost thereof.

Scarcity

The situation which arises when demand for any given good outstrips the supply of that good.

Water market

A market where water is traded in the same fashion as other goods.