Economic instruments for water quantity management under the responsibility of MoLIT

This chapter reviews three economic instruments for water quantity management in Korea from a financial and economic perspective, which are under the responsibility of MoLIT. Specifically, it seeks to answer two questions: i) Do the instruments generate the revenues needed to finance the operation, maintenance and renewal of existing infrastructures to supply dam and river water? ii) Can they promote water use efficiency, stimulate private sector investment in water savings, or allocate water where it is most needed? The chapter reviews international experience with similar instruments and suggests options to transition towards economic instruments that actively contribute to water policy objectives.