Charging for Water Use in Brazil: State of the Art and Challenges

In Brazil, charging for water use is one of the five management tools provided for in the National Water Resources Policy, which aims to recognize the economic value of water, induce the rational and efficient use of water, and raise financial resources to finance actions contained in the watershed plan. After more than 20 years since its inception, the effective implementation of charging for water in Brazilian basins, despite its maturity, has yet a long way to go. Furthermore, where it is already implemented, there are many questions regarding the efficiency of the charges: has water been adequately priced as a natural resource endowed with economic value? To what extent has charging stimulated rationality and efficiency in water use? To what extent have the funds raised been effectively invested? How has the Brazilian charging model been in line with those in other countries? This paper presents a review of the state of the art of water charging in Brazil and proposes a reflection on the Brazilian charging model to contribute to a better application of this tool.