A Cost-Effectiveness Analysis of Water-Saving Measures for the Water Framework Directive: the Case of the Guadalquivir River Basin in Southern Spain

Abstract

The aim of this paper is to contribute to the still scarce literature on CostEffectiveness Analysis (CEA) in the context of the EU Water Framework Directive (WFD) in water scarce areas illustrated through a case study in Southern Spain. CEA is the preferred method to select policy measures to achieve the good ecological status of water bodies as prescribed by the WFD. It generates a ranking of the measures, according to the ratio between the equivalent annual cost and the reduction of impacts, to select the measures to be included in the Program of Measures (PoM). Here, the water-saving measures discussed in the public participation process for the elaboration of the PoM for the Guadalquivir River Basin are analysed using CEA. A methodological approach, including uncertainty for cost and efficiency of measures is proposed. A comparison between pressure and impact analysis of the effectiveness of measures shows that, in the context of the WFD, CEA should be based on the impact of the measures rather than on the pressure reduction, as the latter can lead to a misleading ranking of the water-saving measures.

Literature Review on Rebound Effect of Water Saving Measures and Analysis of a Spanish Case Study

“…These provisions are imposed by the government in order to improve water management sustainability. Berbel et al (2011) analysed the cost effectiveness of water saving measures in the basin and studied the impact of deficit irrigation.…”

An extended PMP model to analyze farmers’ adoption of deficit irrigation under environmental payments

“…While the analysis of water-saving measures should be better addressed on a comparison of possible measures (Berbel et al, 2011), the proposed analysis seems to confirm that agro-environment payments could be a part of a more strategic approach to protecting water resources (EC, 2005).…”

Cost-effectiveness analysis of sewer mining versus centralized wastewater treatment: Case study of the Arga river basin, Spain

“…Following Aulong et al(2009), Berbel et al (2011 and Molinos-Senante et al(2011), costs are the direct financial costs of each alternative while social costs are excluded.…”

“…A key differentiating element is the role that economic tools and principles have been assigned in the WFD (Van Engelen et al2008, Xenarios 2009,Berbel et al 2011, Martín-Ortega 2012. To fulfil the environmental objectives of the WFD, each river water basin should have undertaken a program of measures (PoM) by 2009 which shall be reviewed and updated at the latest 15 years after the date of entry into force of the WFD and every 6 years thereafter.…”

“…Even though CBA has the advantage of measuring the net benefits of each alternative in monetary terms ensuring the economic rationality of investments, within the WFD context, the most widely accepted method is CEA (Berbel et al 2011, Molinos-Senante et al 2011 because it allows for the outcome of the PoM to be evaluated in terms of physical units avoiding the complex processes of economic valuation.…”