ABSTRACT
A raw water charge in Brazil was introduced by Law nº 9.433 on 8 January, 1997, as an economic instrument to manage Brazil’s water resources. Its purpose is to induce water users to rationally consume water, to recognize the economic value of water, and to obtain financial resources. The São Francisco River Basin implemented a raw water charge in July of 2010, and nothing has changed or improved since. This paper presents an analysis of this raw water charge system, identifies aspects that can be improved, and simulates the proposed improvements for water users of the Submédio São Francisco Hydrographic Region. The results showed that it is necessary to review the values currently used in the raw water charge system. The public unit prices (PUP) have an accumulated lag of around 50%, due to Brazilian inflation rates. The measurement of quantitative and qualitative aspects in addition to the protection against emergency situations that currently exist in the raw water charge system are not sufficient to assist in the basin’s water sustainability. Changes suggested for the raw water charge system include the consideration of water scarcity, priority in water use, the treatment of effluents and irrigation technology, among others. Such changes prove to be effective in considerably reducing or increasing amounts to be paid by users, and can thus induce preventive actions and reduce waste.
Keywords:
environmental management instruments; economic instruments; raw water charge; São Francisco river basin