An introduction to the economic dimension of groundwater
Economics comprises the third dimension of importance to groundwater, the other two, the physical and the legal dimensions having been described in the preceding chapters. This chapter begins with a description of the concept of ‘good’. It continues with a note on the nature of economics and its relation to scarcity and a discussion on the various types of good (economic good, public or merit good, commodities and private goods) and their relationship to groundwater. A section on the economic value of groundwater follows. The chapter closes with a discussion on managing groundwater as a private good.