Sources of Financing in the Function of Water Management - Present Situation and New Possibilities

Abstract

Water management is financed from various sources including various forms of fees paid by the users of the water system, government budget assets, ad other assets specified by the law. The system of water management financing in the Republic of Croatia is in its large part based on the principle of solidarity. In a lesser part, there is also a model of financing based on market principles. The experiences of modern European countries suggest the necessity to develop financing models based on market principles. This paper investigates the possibilities of implementation of these recent experiences to improve the conditions for water management financing.

Keywords: water fees, compensation for the use of water resources, water protection fee, the principle of solidarity, municipal services, payment for municipal services

JEL Classification: N5