| Abstract: | In this study we search for solutions to the problem of Israel's water shortage. To illustrate the shortage, we first model the water market in Israel, i.e., the corresponding supply and demand of water, and from it the dynamics of water prices. A direct way to solve the shortage problem and to reduce the high equilibrium price can be found via a different way of sharing water among the Levant countries, or by bringing more water from outside the region. The latter can take the form of conveying Nile water or water from Turkey or by constructing desalination plants along the shores. In this study we concentrate on the importing of Nile water.The costs of most of the solutions are too high compared to the returns to water in agriculture. This relation is continuously changing with the increasing demand for water for domestic and agricultural use. Our analysis shows that within 5–10 years the marginal value product of water in the area west of the Jordan river would equal the marginal costs of water from the Nile, $0.40m3. |
