Irrigation in the Jordan Valley: Are water pricing policies overly optimistic?

Water is very scarce in the Hashemite Kingdom of Jordan. The development of both public irrigation in the Jordan Valley and private groundwater schemes in the highlands has diverted a large share of the countryʹs water resources to agriculture. Many policy instruments have been used in the last 10 years to reallocate water to nonagricultural uses and encourage improvements in efficiency throughout the water sector. Demand management has been emphasized, with water pricing policies expected to instill conservation and motivate a shift toward higher-value crops. We examine the rationale for, and potential and current impact of, pricing policies in the Jordan Valley.