Water pricing policy reform in irrigation: From theory to practice and lessons learnt for Vietnam

Abstract

Water pricing has been recognised as an important policy instrument to combat challenges in the water sector to obtain the overall efficiency as well as the sustainability of its related services. Setting the price ‘right’ of water in irrigation is crucial. Promoting and implementing water pricing reforms in irrigation is very necessary in the current context of Vietnam. This paper reviews insights from the literature on new institutional economics, neoclassical economics and political sciences to reason for policy changes. The paper implies crucial lessons for Vietnam in regard to reform of its irrigation water pricing policy.