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Introduction to Microeconomics

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Question 8

Depleting Fossil Aquifers – Transitioning Jordan's Water Supply

Jordan is one of the most water-scarce nations in the world. For decades, it has relied heavily on fossil aquifers—non-renewable groundwater reserves that do not replenish naturally. In 2018, hydrological assessments showed that extraction rates from key aquifers like the Disi Sandstone Aquifer exceeded natural replenishment rates by over 150%, leading to rapidly falling water tables. In response, Jordan has initiated plans to transition toward large-scale seawater desalination (such as the Aqaba-Amman Water Desalination and Conveyance Project), despite high energy requirements and substantial infrastructure costs that have strained the national budget.

While municipal demand remains high, economic fluctuations affect the government's capacity to fund and subsidize large water projects. Figure 1 shows the volume of desalinated water produced in Jordan and real GDP per capita between 2018 and 2021. Figure 2 shows the annual extraction from fossil aquifers during the same period.

Desalination involves removing salts from seawater to produce fresh water. While sustainable in terms of preserving subterranean fossil aquifers, the process is highly energy-intensive and capital-intensive, requiring massive electricity consumption and specialized infrastructure compared to pumping groundwater.

Figure 1: Desalinated water production and real GDP per capita in Jordan, 2018 to 2021

Year20182021
Desalinated Water Production (million m3m^3m3)15.045.0
Index of Real GDP per Capita (2018=100)100101.2

Figure 2: Annual extraction from fossil aquifers in Jordan, 2016 to 2022

YearAquifer Extraction (million m3m^3m3)
2016480
2017495
2018510
2019490
2020465
2021440
2022415

Explain how the shift from groundwater extraction of fossil aquifers to seawater desalination impacts on scarcity.

[4]

Introduction to Microeconomics Questions

  1. A Level
  2. /Economics
  3. /Introduction to Microeconomics