Desalinate or divert? Coastal non-market values as a decision tool for an integrated water management policy: The case of the Jordan River basin

This paper deals with a cost effective analysis of two options to increase the water supply in Israel. The first policy is to divert 300 Million Cubic Meters (MCM) of water from the Sea of Galilee (SOG) to the central part of Israel. This policy is the existing one. The second policy is to replace this diversion with desalinated water plants that will be built on the Mediterranean Coast (MC). These two options carry both market and non-market consequences. The first policy has a negative effect on the SOG itself due to the lower lake level. It also carries some negative consequences on the Jordan River (JR) and the Dead Sea (DS) which are located downstream. The second policy involves water production at a higher cost and has negative external effects of scarce coastal land usage and high energy consumption. A Payment Card (PC) Contingent Valuation (CV) survey was performed at the four sites (the SOG, the DS, the JR and the MS). We show that when one takes these non-use values into account, the preferred solution will shift from the usage of the SOG to the desalination policy.