Economic analysis for managment of water and aquatic environments

Whether the goal is to characterise in social-economic terms how water is used in a given area or to assess the costs and environmental impacts of a programme of measures or a project, economic analysis is now an integral part of the preparatory and formulation processes of public policy. Whatever the size of the project, cost-recovery analysis, cost-effectiveness analysis and cost-benefit analysis are all assessment techniques that water specialists must use to comply with regulations and implement water-management policy in their area.

Table of content

Characterisation of water uses

• What is meant by “water uses”?
• Which water uses must be characterised and how should that be done?
• Detailed characterisation of water uses
• Linking economic use with the natural environment
• Drafting a summary document to facilitate communication
• Foreseeing changes in uses to develop prospective scenarios

Assessment of costs

• Which costs must be assessed?
• Assessing the costs of a project or measure
• Managing uncertainty in WFD economic assessments and presenting uncertainty to political decision-makers
• Special cost-calculation techniques - cost-effectiveness, cost-benefit and cost-recovery analyses

Assessment of environmental impacts of a project or measure

• Assessment of the environmental impacts of a project or measure
• Methods to assess the impact of a project or measure
• Operational implementation of the assessment on the environmental benefits and damages incurred by a project or measure
• When should the environmental impacts of a project or measure be assessed?
• Conclusion

Cost recovery or the water economic cycle

• Scope of cost-recovery analysis
• Calculating cost recovery

Disproportionate costs - a special type of assessment

• Introduction
• In France, national guidelines with local adaptations
• In the U.K., a top-down approach
• Conclusion