ABSTRACT
Climate change is the one of the most challenging environmental problems facing people in Jordan, with far-reaching impacts on the economy, public health, water resources, infrastructure, coastal resources, energy demand, natural features and recreation (Davies, 1958). In Jordan, growing impacts of climate change also come at a time when water resources are already under stress due to existing scarcity that is magnified by demands from a growing population and rising per capita incomes. While Jordan has several projects under way, like the Red Sea–Dead Sea Canal, to meet this demand for water, other adaptation measures could be taken to reduce the use of the nation’s renewable and non-renewable water. This chapter explores the potential utility of market institutions as a form of adaptation that can promote a sustainable future for water resources in Jordan and thus to help adapt to a potential reduction of water availability due to climate change and/or increased climate variability.
