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Modelling water policies with sustainability constraints: a dynamic accounting analysis Fabio Fiorillo, University of Urbino and Opera Antonio Palestrini, University of Teramo and Opera Paolo Polidori, University of Urbino and Opera Claudio Socci, Università Politecnica delle Marche and Opera Download the Paper (PDF format) - February 20, 2006 Tell a colleague about it. Printing Tips: Select 'print as image' in the Acrobat print dialog if you have trouble printing. ABSTRACT: The EU Directive 2000/60/EC, also known as the “Framework directive in the field of water policy”, stresses the importance of water in human development processes and states that EU members should coordinate water policies towards a sustainable use of this resource; hence, water has a strategic role both for present and future generations and should be managed using a systemic approach. Sustainable policies for the management of water resources must also foresee the setting up of complex systems for analysis and evaluation which must be able to control and govern the entire water system, taking into account both sustainability and economic impacts of the policies adopted. In our paper, we propose a model which, on the one hand, describes the physical relationships among different economic activities and the natural water cycle , while allowing us, on the other hand, to evaluate the economic impact of water policy sustainability. For doing this, we integrate a material flow account approach in a national accounting scheme (NAMEA). This new framework allows the analyst to consider both the effect of given policies on the water cycle and the constraint produced by the sustainability problem on the economic system. SUBJECT AREA: Q25, Q28, C67, D57 SUGGESTED CITATION: Fabio Fiorillo, Antonio Palestrini, Paolo Polidori, and Claudio Socci, "Modelling water policies with sustainability constraints: a dynamic accounting analysis" (February 2006). UNIMI - Research Papers in Economics, Business, and Statistics. Economics. Working Paper 11. http://services.bepress.com/unimi/economics/art11 Paper presented by 2nd Milan European Economy Workshop, University of Milan (2003).