Macroeconomic and institutional sources of environmental changes–the case of Israel's water sector

The paper examines the macroeconomic and institutional sources of environmental development in Israel's water sector, for example changes in drinking-water quality, sewage treatment and aquifer depletion trends.

It is shown that Israel's economic growth process was, by and large, accompanied by environmental improvements in the water sector; but it is the institutional approach which provides a cohesive explanation of how environmental changes took place. Implementing reforms in Israel's water sector without adequately addressing the institutional aspect might thus undermine the success of such plans.