Economic ideas and processes are becoming increasingly integrated with more traditional engineering and hydrologic models of water management problems. Combining economic management concepts and performance indicators with an engineering-level of understanding of a hydrologic system can provide results and insights more directly relevant for water management decisions and policies. When such models are developed and used with involvement of stakeholders, they can become a basis for shared understanding of water problems as a foundation for negotiated management and policy solutions. When implemented with optimization software, integrated hydro-economic models also can suggest promising innovative solutions for policy-makers to consider. Their applications to river basin management problems are reviewed. Economic and integrated economic-engineering-hydrologic modeling is then discussed in the context of the evolving European Water Framework Directive. Relevant items are cost recovery and water pricing, cost-effectiveness of water management measures, and public participation in decision processes.
To cite this version:I. Heinz. Co-operative agreements and the EU Water Framework Directive in conjunction with the Abstract. This paper discusses the significance of voluntary arrangements for the water and agricultural policies in the European Union. The current implementation of the European Water Framework Directive (WFD) and the reform of the Common Agricultural Policy (CAP) require new approaches in water management. As many case studies have shown, co-operative agreements (CAs) between water companies, farmers and authorities can help to reduce environmental pressures on water bodies. The main reasons for that are: i) water companies are ready to advise and financially support farmers in changing production methods; ii) changes of farming practices are tailored to the site-specific requirements; iii) farmers and water companies are interested in minimising the costs and environmental pressures as they benefit, for example, from modernization of farming methods, and reductions in cost of water treatment, and iv) voluntarily agreed commitments to change farming practices are often stricter than statutory rules. Moreover, precautionary rather than remedial measures are preferred. Tackling diffuse pollution is one of the main concerns of the WFD. CAs can enhance the cost-effectiveness of actions within the programmes of measures so that good water status is achieved by 2015. In CAs all relevant stakeholders, located in catchment areas of agricultural usage, can be involved. Thus, they can help to foster integrated water resources management. In particular, disproportionate costs of changing farming practices can be identified. With regard to the recent CAP reform, financial support for farmers will be linked to compliance with environmental standards and further commitments. This concerns both direct payments and agri-environmental programmes. The experience gained in CAs can provide information on best agricultural practices. Informed farmers are more ready to meet environmental requirements. BecauseCorrespondence to: I. Heinz (iheinz@infu.uni-dortmund.de) CAs implement the most cost-effective changes in farming practice, it can be assumed that farmers will not face considerable costs due to the new EU water and agricultural policies. Some examples of CAs are described and the significance of CAs in the implementation of the WFD and CAP reform will be highlighted. The article closes with an outlook on the needs of future research activities.
A limited number of Member States in the EU have gained experience with establishing co-operative agreements between agriculture and the water sector. Their main aim is to reduce or prevent water pollution caused by intensive farming practices. The research has shown that significant changes in farming practices have been achieved as a result of negotiation between farmers and water suppliers. Consequently, in many catchment areas improvements in water quality can be observed. Co-operative agreements have the important advantage that the measures taken can be tailored to the different local conditions in catchment areas. Reducing diffuse pollution resulting from intensive agriculture is one of the main issues of the EU Water Framework Directive. The current paper builds on the results of a EU-wide research project which examines the role co-operative agreements can play in water policy and the Common Agricultural Policy.
Abstract. This paper discusses the significance of voluntary arrangements for the water and agricultural policies in the European Union. The current implementation of the European Water Framework Directive (WFD) and the reform of the Common Agricultural Policy (CAP) require new approaches in water management. As many case studies have shown, co-operative agreements (CAs) between water companies, farmers and authorities can help to reduce environmental pressures on water bodies. The main reasons for that are: i) water companies are ready to advise and financially support farmers in changing production methods; ii) changes of farming practices are tailored to the site-specific requirements; iii) farmers and water companies are interested in minimising the costs and environmental pressures as they benefit, for example, from modernization of farming methods, and reductions in cost of water treatment, and iv) voluntarily agreed commitments to change farming practices are often stricter than statutory rules. Moreover, precautionary rather than remedial measures are preferred. Tackling diffuse pollution is one of the main concerns of the WFD. CAs can enhance the cost-effectiveness of actions within the programmes of measures so that good water status is achieved by 2015. In CAs all relevant stakeholders, located in catchment areas of agricultural usage, can be involved. Thus, they can help to foster integrated water resources management. In particular, disproportionate costs of changing farming practices can be identified. With regard to the recent CAP reform, financial support for farmers will be linked to compliance with environmental standards and further commitments. This concerns both direct payments and agri-environmental programmes. The experience gained in CAs can provide information on best agricultural practices. Informed farmers are more ready to meet environmental requirements. BecauseCorrespondence to: I. Heinz (iheinz@infu.uni-dortmund.de) CAs implement the most cost-effective changes in farming practice, it can be assumed that farmers will not face considerable costs due to the new EU water and agricultural policies. Some examples of CAs are described and the significance of CAs in the implementation of the WFD and CAP reform will be highlighted. The article closes with an outlook on the needs of future research activities.
This article evaluates the economics of alternative water-allocation strategies involving farmers and urban water users, while also presenting a cost-benefit analysis framework for water reuse and exchange projects at the basin level. Case studies from Spain and Mexico show that such projects at the basin level can be economically efficient and financially feasible.
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