Rapid growth, pollution and neglect have had major environmental, health and economic consequences in the Kidron River Basin, Jerusalem’s cradle of the three monotheistic faiths. The Israeli-Palestinian geopolitical conflict further complicates the region’s urbanization challenges with a history of mistrust between Israeli authorities and local Palestinian residents, lack of infrastructure investment and significant illegal construction. This paper offers a new approach for addressing the environmental crisis by applying environmental economic methods that account for the welfare of all stakeholders in the region. The proposed methodology incorporates society’s values for environment and natural habitat and provides a tool for public policy decision making that can be justifiable to all sides of the conflict.
|Keywords:||Environmental Economics, Welfare Economics, Kaldor–Hicks Criterion, Geopolitical Conflict, Sewage and Waste Management, Jerusalem|
Faculty Member, Department of Economics, The Western Galilee College, Acre, Israel