Evaluation and ranking of options for economic instruments reform

This chapter presents the evaluation and ranking of options for economic instruments reform in Georgia. A number of criteria were used to assess the final list of options: environmental, economic, social and fiscal impacts, cost-effectiveness, political acceptability, and their administrative and practical feasibility. The chapter discussed the options which are expected to have major benefits for water management and/or the natural environment. Whether a tougher licensing and higher charges for water abstraction and pollution would have economic impacts mainly on water- and pollution-intensive undertakings or not? Would the most serious social impacts arise from increases in water and sanitation tariffs and increased irrigation fees? Could social impacts be mitigated and compensated in various ways?