Socio-economic research in support to the implementation of the Water Framework Directive

1. Socio-economic research in support to the implementation of the Water Framework Directive Andrea Tilche Unit Head of the Water Key Action DG Research - I/3 - Brussels andrea.tilche@cec.eu.int

2. Socio-economic research in the work programme of the Water KeyAction • dedicated socio-economic research within the area of integrated water resources management • integrated into most of the research projects dealing with water management, water technologies and monitoring systems

3. Breadth of research interests in the field of economics in the ongoing RTD projects • Economic analysis, water pricing, water allocation, compilation of trends in water consumption (METRON, CYPRUS, MEIF, EUROMARKET, AQUALIBRIUM) • Inclusion of socio-economic issues in the development of approaches for integrated water resources management at catchment/river basin scale, stakeholders participation and communication (FIRMA, EUROCAT, WaterStrategyMan, AgriBMPWater, MULINO, WADI, EVALUWET)

5. The Water Framework Directive Economic aspects in Research projects *Harmonica Cluster

6. Characterisation of river basin: linking biophysical and economic information • Data collection and analysis on water consumption and pricing trends in the study area (municipalities), surveys, trends in population, and the industrial and housing markets (FIRMA) • Statistically aggregated economic information - such as systems of accounts and models quantifying volumes of sectoral production and fertiliser or pesticide applications on a regional or national basis (PEGASE) • Operationalisation of a framework of the economic valuation of wetland functions for the implementation of the WFD (EVALUWET)

7. Where will we be in 2015? Assessing trends in water demand and supply • Economic implications of possible water liberalisation scenarios (EUROMARKET) • Baseline scenarios and trends concerning public-private partnership in urban water management with a focus on the private sector (AQUALIBRIUM) • Development of baseline and response/management options scenarios of catchments changes and their impacts on the coast (EUROCAT) • Evaluation of available methods for the assessment of economic costs and environmental impacts from water supply and use, evaluation of alternative water resources allocation scenarios (WaterStrategyMan)

8. Selecting cost-effective measures for achieving the environmental objectives of the WFD • Estimation of economic parameters for water demand valuation in the absence of market prices and determination of efficient allocation schemes (CYPRUS) • Development of model aiming at estimating indirect costs on large watersheds and assessment of best management agricultural practices (BMPs) in terms of environmental efficiency, economic cost and potential acceptability by farmers (AgriBMPWater)

9. Assessing existing and future levels of the recovery of the costs of water services • Inter-comparative lessons in five case cities on the organisation of the urban water service sectors, costing of raw water, levels and types of prices, etc. and comprehensive meta-analysis of water-price elasticity studies (METRON) • Analysis of EU country’s tendencies concerning pricing and price policy of water by drawing the links between investments, financing and price while including the full cost recovery and the polluter-payer principles (MEIF) • Analysis of the ‘full cost recovery’ principle in the water demand and technology adaptation at farm level (WADI)

10. Linking the economic analysis with the information, consultation and participation process • Increase the understanding of participatory river basin management in Europe (FIRMA, HarmoniCOP) • Provide insight into social learning in a multi-phase multi level context • Increase the understanding of the role of information and information tools • Compare and assess national PP experiences and their background • Involvement of national and sub-national governments and major stakeholder groups • Prepare an Handbook on Public Participation methodologies for implementing the WFD

11. EUROMARKET • Private sector participation is affecting throughout Europe “the traditional legislative approach” • Shifting towards a more regulatory “economic approach” • Interactions between the water supply and sanitation sector’s dynamics, the enterprises behaviours and strategies, and the emerging regulatory activities. • Water liberalisation scenario from: • The perspective of the consumer (prices of water supply and sanitation services) • The perspective of the operator (costs and profitability) • The perspective of the sustainability of water resources

12. HARMONICOP To provide answers in four areas that are crucial for effective PP: • Scale issues (at which level and in which phase to organise which kind of Public Participation?) • Cross-sectoral/horizontal interaction: co-operation between the “competent authority and other government bodies involved • The role of information and information tools • The influence of the cultural/political/geographical context

13. AQUALIBRIUM • Public-private partnership in urban water management • National comparison of member states policies • legal and institutional framework • constitution situation of community management • availability and uses of water • situation of protection and rationing of water resources • strategies of water management

14. MEIF • Methods of evaluation of investments in water and sanitation • Futures strategies concerning the financing of investments in water and sanitation • Country’s tendencies concerning pricing and price policy of water 1.Investments, financing and price including the full cost recovery and the polluter-payer principles