The report says that the lack of water is particularly evident in agriculture despite the massive use of bottled water.
The water sector in Israel suffers from failures arising from the limitations of government bodies to meet the complex tasks that the sector sets before them - a new study by the Taub Center. Prof. Yoav Keslo's research reveals that in light of the increasing consumption, the rising costs, the decrease in natural sources and changes in the way water is consumed, the tasks of the future are expected to be more difficult and require the adaptation of the water sector to the needs of the future and increased transparency and public involvement
The main findings of the study:
• In the last 50 years, the amount of water per capita in Israel has been decreasing as a result of the fact that the rate of population growth has exceeded the rate of growth in water sources.
• The amount of water supplied to the Israeli economy increased by 35% between 1960 and 2010. During this period, there was a continuous decrease in water consumption in households and the allocations for agriculture were reduced while reducing the use of benign water in agriculture and transferring waste water from the city to agriculture.
• The cost of water production has increased over the years in leaps and bounds, from about 0.5 NIS per cubic meter in the 50s to 1.70 NIS in the 60s and up to 3.00 NIS per cubic meter in recent years, with the increase in water production salted
• The government failed in the management of water resources: water production was in excess, water sources were damaged and a shortage was created that worsened the crises in dry periods.
The Taub Center publishes a comprehensive study and review on the water sector in Israel, prepared by Professor Yoav Kaslow, a world-renowned expert in agricultural economics from the Hebrew University and recently a member of the Bain Commission on the management of the water sector in Israel (2010). Prof. Keslo identifies failures in the management of the water sector that originate from the limitations of the ability, and sometimes the willingness, of the government bodies to fully fulfill the complex tasks that the sector poses. This is despite the fact that Israel's water system generally fulfills its tasks, thanks to sophisticated engineering systems, the extensive knowledge gathered, the solid legal basis and the professionalism of the employees.
In managing the policy of the water sector, it is very important to preserve the resources, prevent the exploitation or overproduction of the water in the reservoirs, and ensure the correct planning of water reserves for the years in question, considering emergency reserves. But the Taub Center report indicates that over the years, the government has not fulfilled its role in this area properly and those in charge of implementing the policy have failed in their duties. It should be emphasized that as a result of overproduction, the quality of the water is also affected. Prof. Keslo estimates that the tasks of the future will be more difficult and therefore the structure of the water sector must be examined and adapted to its functions; And especially to increase the public's participation in the activities of the water sector in terms of information, advice and supervision.
The tasks in the water sector in the future will be more difficult:
• The Taub Center's research by Prof. Keslo shows that the amount of water supplied to the Israeli economy has increased and will continue to increase significantly. In 1960, about 1.3 billion cubic meters (cubic meters) were supplied, an amount that increased to about 1.8 billion cubic meters in 2010, mainly thanks to the increase in municipal water (wastewater that is purified and supplied to agriculture, streams and water bodies) and recently also with the increase in desalinated water. The amount of water is expected to continue to grow until 2030 to double the level compared to 1960 while significantly changing its composition, so that it will include 860 million cubic meters of desalinated water and 685 million of desalinated water.
• The growth of the population exceeded the growth of water sources in Israel, and therefore the amount of water per capita in Israel in the last 50 years has been getting smaller and smaller. It should be noted that the reduction is particularly evident in agriculture.
• In recent years, there has been increased recognition of the danger that the amount of water that will be available to Israel from natural sources will decrease due to the continuous decrease in the volume of rainfall. Due to this and with the increase in population, the Taub Center report points to three main changes that the economy is going through: reducing the amount of benign water in agriculture and transferring it to use in the urban sector, the supply of waste water from the city to agriculture, and the addition of desalinated sea water (3 large desalination plants are already operating on the Mediterranean coast and 2 are under construction).
The price of water increases:
The cost of producing water has increased over the years. Representative approximate values (at today's prices) can be about 0.5 NIS per cubic meter in the first years of the state, 1.70 NIS per cubic meter beginning in the mid-sixties and 3.00 NIS per cubic meter in recent years. The leaps in water production are explained by three different eras in water production in Israel. As Prof. Keslo's research shows, in the past water was supplied from sources close to the consumption centers, and the cost was low, about NIS 0.50 per cubic meter. After the establishment of the national carrier (1964) for transporting water from the north to the center and the south, the cost increased to about 1.70 NIS per cubic meter, and in recent years, with the addition of desalinated water to the supply system, the cost increased another level to about 3.00 NIS per cubic meter.
The water supply for agriculture reflects the complexity of water supply in Israel:
• Over the years, there has been a shift from supply from local sources and close to the fields irrigated by them, to facilities such as the "national leader", which quadrupled the supply of water for agriculture. Then, there was another transition - from benign water to stagnant water.
• Agriculture uses more than 50 percent of the total amount of water in the country, but its share of the benign water is getting smaller. Nevertheless, the amount of water available to the State of Israel cannot satisfy the full food consumption and therefore Israel "imports" so to speak water - which was used to produce grains for flour and oil, sugar, animal products, dried fruits and other foods - from places with soft soil and rain.
• Despite the reduction in the amount of water for the industry, the output of vegetable agriculture, which uses water, is increasing. In the last forty years, the yield of crops per unit of water has increased sevenfold.
The government manages the water sector and its involvement is intended to ensure a share of market failures, but there are still many challenges related to the government's activity in the water sector:
• The government budget supports the water sector with considerable amounts. In the decade 2000-2010. The budget expenditure for investments in the water sector amounted to 604 million NIS per year and other expenses reached an average of 570 million NIS per year - but there were considerable differences between the years. For example, in 2004 there was a particularly large expense due to covering arrears in payments to Mekorot.
• According to the law, all water sources in the country belong to the public, there is no private ownership. The government manages and supervises the water sector because of the possibility of a "market failure" in an industry where suppliers have monopolies and water and waste water have significant environmental effects. But the government also failed in its role: the production of water was in excess, the water sources were damaged and a shortage was created that worsened the crises in dry periods.
• Overproduction was seen in the coastal reservoir already in the sixties and despite repeated warnings, the policy was not corrected. It is estimated that in the decade of the nineties overproduction, from all natural sources, was 80 million cubic meters per year.
• The failure of the government is structural: the work of the government is carried out by people who carry a great burden. They are subject to pressure and are sometimes biased in their decisions, which limits their ability to act. The way to mitigate the government's failures is to increase transparency and public involvement in the water sector.
The Taub Center for Social Policy Research in Israel, headed by Professor Dan Ben-David, is an independent, non-partisan institution for socio-economic research based in Jerusalem. The center provides the leading decision makers in Israel and the general public with an overview of the economy and society. The interdisciplinary teams - which include prominent researchers from academia and leading experts from the policy fields - and the center's professional staff conduct research and offer policy recommendations on the main socio-economic issues facing the country.
