Water resources is a crucial environmental good for the function of the human societies and the ecosystems. Moreover, water is an important input for the economy and an indispensable factor for economic growth. Especially in regions that are facing water scarcity, the adoption of water management policies and approaches fostering the sustainable use of resources while promoting economic growth becomes an emerging issue. The Mediterranean region is one of the most vulnerable regions regarding the availability of water resources due to climate change and human activities. The Water-Energy-Food (WEF) Nexus offers an integrated approach analyzing the synergies and trade-offs between the different sectors in order to maximize the efficiency of using the resources, whereas adapting optimum policies and institutional arrangements. The Mediterranean is a region where we observe a large spectrum of issues emanating from water pollution and natural resource degradation to water scarcity, large amounts of food loss and waste and increasing demand for energy and food. Agricultural practices, urban development, demand management for water, and protection of ecosystems, particularly aquatic ecosystems, are areas of particular intervention available to the decision-makers in enhancing availability of water for the various water using sectors. In this context, the current policy note paper aims to address a major issue: how can the implementation of the WEF

[1] Water pricing schedules often contain significant nonlinearities, such as the increasing block tariff (IBT) structure that is abundantly applied for residential users. The IBT is frequently supported as a good tool for achieving the goals of equity, water conservation, and revenue neutrality but seldom has been grounded on efficiency justifications. In particular, existing literature on water pricing establishes that although efficient schedules will depend on demand and supply characteristics, IBT cannot usually be recommended. In this paper, we consider whether the explicit inclusion of scarcity considerations can strengthen the appeal of IBT. Results show that when both demand and costs react to climate factors, increasing marginal prices may come about as a response to a combination of water scarcity and customer heterogeneity. We derive testable conditions and then illustrate their application through an estimation of Portuguese residential water demand. We show that the recommended tariff schedule hinges crucially on the choice of functional form for demand.Citation: Monteiro, H., and C. Roseta-Palma (2011), Pricing for scarcity? An efficiency analysis of increasing block tariffs, Water Resour. Res., 47, W06510,

Abstract:Despite the very few studies regarding FDI in Portuguese regions -especially regarding its effects -FDI can be an important catalyst for regional economic development and growth. This work studies the existing FDI in the Portuguese regions, analysing its distribution by NUTS III, the sectors in which FDI has more weight in each region, as well as it evolution between 1986 and 2009. Over the years analysed, the results show an increase in the number of firms with FDI in Portugal, although their relative weight remained constant. At the same time, these firms spread to all regions of the country, besides the main economic and services agglomerations (Lisboa and Porto). The regions attracted not only FDI for the sectors in which they have already been specialized, but also for other activities, diversifying the regional productive structure. The increase and diversification of FDI coincided with the tertiarisation of the economy, approaching the totality of the productive specialization of the country, while continuing to focus on manufacturing.JEL-Codes: F21, F23, R12.

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