Main Trends on Using Economic Instruments for Management of Water Resources in Romania

The actual tendency of environmental protection policy has evolved from worldwide concerns about adapting sustainable economic development to climate change. This movement includes establishing the price of water and applying other measures to manage and conserve water resources sustainably. Two decades ago, the European Commission advocated for the implementation of economic instruments including water levies as a means to accomplish sustainability objectives, as outlined in the Water Framework Directive (CE/60/2000). Hence, the operational principles of the water tariff have been formulated to consider key variables crucial for promoting sustainable consumption and safeguarding of water resources. The chapter aims to examine and evaluate the attributes, economic mechanisms, and effectiveness of environmental economic instruments in the water sector, namely, in Romania, with regard to the quantitative and qualitative management of water resources. The research conducted a dynamic analysis of various factors related to water pricing and taxation in Romania. It examined how these economic tools influenced the quantity and quality of water gathered and utilized. The methodology employed comprises a literature study, utilization of prior research findings, gathering and processing of collected data, and dynamic and comparative analysis of pertinent variables. A forecast of the water quantity and demand trends in Romania by 2030 is also provided. The results emphasized that in Romania the use of economic mechanisms for the purpose of managing water resources in terms of quantity and quality had notable positive impacts on both the environment and the economy.