Water Scarcity: Causes and Financial Im-pacts

• Autorzy: Federica Ielasi
• Języki publikacji: EN

Abstrakty

EN

Water scarcity is one of the greatest risks to sustainable development and economic progress, globally. Physical shortage and supply-side inefficien-cies are usually combined with an increase in the water demand, for agriculture, for industry, as well as for domestic purposes. Besides, water scarcity and water stress are exacerbated by environmental factors related to climate change. As a consequence, water is at the core of the interests of international or-ganizations and regulators who intend to define sustainable development goals and promote sustainable practices across countries. Among the Sustainable Development Goals (SDG) set up by the United Nations, Goal No. 6 is related to water preservation and it is aimed to "Ensure availability and sustainable management of water and sanitation for all". Nevertheless, current financial resources are inadequate to achieve SDG 6. Other than increasing the role and effectiveness of traditional financial resources, it could be relevant to increase innovative sources of financing, such as commercial financing involving the private sector. The Subchapter distinguishes private funding from the banking sector and financial markets. Banks should introduce specific risk management tools for evaluating the credit risk arising from loans to a water-related company. Considering the financial investments in the water sector, retail and institutional investors can trade water mutual funds, water Exchange Traded Funds (ETFs), and Futures in water. Investors in the fi-nancial markets are not only relevant suppliers of funds able to cover the financial needs of water companies, but can also operate with shortterm speculative objectives. In particular conditions, financial speculation could also find advantages linked to water crises and must therefore be suitably regulated. (original abstract)

Słowa kluczowe

EN

Water; Water resources development; Sustainable development; Business activity

PL

Woda; Gospodarowanie zasobami wody; Rozwój zrównoważony; Działalność gospodarcza

• Czasopismo: Scientific Publications / University of Economics in Katowice
• Rocznik: 2022
• Tom: Economics of Sustainability
• Strony: 100--121

Twórcy

autor

Federica Ielasi

• University of Florence, Italy

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