Chapter 6: Politic, Economic and Environmental Dimensions of Water Resources: The Jordan Perspective

World has started to observe important level of global warming fostered by the industrial growth which resulted in the increase in CO₂ emissions and in the environmental pollution (e.g. water and air) affecting total factor productivity growth. Energy is vital for all industries and their growth. Energy generation and energy intensiveness affect carbon emissions. Energy generation relies on water as water is a vital input to the energy generation. Furthermore, water supply is affected by the energy supply and energy dependence. Water is at the core of the industrial growth. It is vital for all productions. Water scarcity problem is becoming more severe due to the climate change. Some regions and countries are more vulnerable to the water scarcity. Middle East countries face significant water scarcity problem. Among these countries Jordan stands out as one of the most vulnerable countries with respect to water scarcity. This chapter emphasises the importance of green and sustainable total factor productivity. Despite of their recent water policies, Jordan started to experience adverse consequences of severe water scarcity problem. The dependence of and relationship between energy and water are vital pillars of economic growth. There is carbon trade-off in their supply. For this reason, conservation capital policies can affect productivity and efficiency. Middle East has scarce water resources and can be affected due to the climate change. Jordan faces most water scarcity among Middle East Countries. This chapter aims to investigate the interaction between industrial growth and climate change as well as their effects to Jordan’s water resources and economy. Furthermore, this chapter emphasises water scarcity problem and water policies in Jordan. This chapter provides recommendations for preventing environmental degradation and mitigating water scarcity problem of Jordan so that its industrial growth can be sustained and its economic growth can become more resilient to the climate change. This chapter is expected to be useful to academics, policy makers, and politics in the relevant field.