Integrating recreational ecosystem service valuations into Israel's Water economy

This study examines how recreational freshwater ecosystem services (FESS) should influence water allocation policies within a comprehensive water economy model. We differentiate between FESS generated by flows and stocks, analyzing their effects on water allocation and pricing. We estimate the inverse demands for recreational FESS in Israel using household visitation data alongside water flow and stock information. These demands are then integrated into a comprehensive model of Israel's water economy to assess their impact on optimal water allocation. Our numerical simulations reveal that recreational FESS demands significantly affect optimal water allocation decisions. For instance, a 20 % increase in demand for flow-generated recreational FESS results in a 24 % reduction in stream flow diversion, a 13 % rise in water diversion from Lake Kinneret, and a 29 % increase in groundwater extraction from aquifers. By bridging the gap between ecological preservation and economic needs, our model paves the way for more holistic and effective water management practices worldwide.