KATHMANDU, MAY 08

The world is experiencing a depletion of groundwater because of rapid population growth, more frequent droughts, and agricultural expansion. This has had adverse socio-economic and environmental impacts, including higher pumping costs, reduced agricultural outputs, and damaged ecosystems dependent on groundwater.

There are basically two approaches to address the impacts: manage supply or demand.

The first approach often involves investments in infrastructure and technologies to increase water supply. Examples include dam construction, water-saving irrigation infrastructure, recycled water treatment, desalination plants, and aquifer recharge technologies. The second approach requires 'soft' interventions, such as educational campaigns, legislation and regulation, and economic instruments (incentives and pricing) to reduce groundwater extractions. Among water-demand management strategies, setting up groundwater markets has proven to be a cost-effective approach. Both buyers and sellers are better off by trading with each other. --blog.adb.org/blogs

A version of this article appears in the print on May 09, 2022, of The Himalayan Times.