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General Information on the Water Framework Directive and Economics

The concept of environmental and resource costs plays a central role in the economic analysis of the European Water Framework Directive (WFD). Environmental and resource costs are an explicit feature of Article 9 of the Directive and both environmental and resource costs and benefits play a role in the identification and definition of environmental objectives and disproportionate costs in Article 4, and the selection of programmes to achieve the environmental objectives in Article 11. However, despite the centrality of environmental and resource costs and benefits to the WFD, there are no methodological guidelines regarding their practical assessment and inclusion within economic analyses of the WFD. Although recent decades have witnessed an enormous expansion of methods for assessing environmental costs and benefits, to date little progress has been made in converting these theoretical and methodological advancements into practical guidance readily applicable for water policy purposes.

The EU policy context: the Common Implementation Strategy (CIS)

In order to address the challenge of implementing the Water Framework Directive in a cooperative and coordinated way, the Member States, Norway and the Commission agreed on a Common Implementation Strategy (CIS) for the Water Framework Directive. Under the CIS process, several guidance documents were elaborated, which were later tested in different pilot river basins. In the recent past, the CIS working group ECO2 has looked at the issue of ERCB in greater detail , however its approach has been primarily theoretical and conceptual in nature, and thus it did not provide clear and understandable guidelines for environmental and resource cost assessment. Therefore the exact role and context specific estimation and interpretation of the estimated environmental and resource costs and benefits in the implementation of the WFD, and hence policy maker demand for their assessment, are still surrounded by many uncertainties and require further clarification.

The policy context in the EU Member States

In order to support the economic analysis in the Water Framework Directive, several EU Member States have begun to develop conceptual approaches and test these in pilot basins. The following sites present some general information on the WFD implementation in selected countries, as well as specific information on the economic analysis.

Resource sites

The following sites provide information about the valuation of environmental goods and services, in particular related to aquatic resources

Research Activities