ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Physical scarcity occurs when the demand of the population exceeds the available water resources of a region. Economic water scarcity occurs when water is adequate, but is unavailable due to a lack of significant investment in water infrastructure (IWMI, 2000; Rijsberman, 2006).

Detailed explanation-2: -Water scarcity is often divided into two categories: physical scarcity, when there is a shortage of water because of local ecological conditions; and economic scarcity, when there is inadequate water infrastructure. The two frequently come together to cause water stress.

Detailed explanation-3: -There are two general types of water scarcity: physical and economic.

Detailed explanation-4: -What is the difference between physical and economical resource scarcity? In the case of demand exceeding availability the term ‘physical scarcity’ is used, whereas ‘economical scarcity’ means that a resource is available in a sufficient quantity, but access is limited.

Detailed explanation-5: -description. Economic water scarcity is due to a lack of water infrastructure in general or to the poor management of water resources where infrastructure is in place. The FAO estimates that more than 1.6 billion people face economic water shortage.