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WFD & Economics

WFD & Economics. Tom Harvie-Clark & Eric McRory 29 October 2003. Tom Why bother? What’s required?. Eric How we do it? What we do?. Overview. Why Bother?. Required Article 5 (& Annex III), Article 9 of WFD Section 5 (2) (c) of WEWS Act Crucial to our understanding Opportunity

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WFD & Economics

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  1. WFD & Economics Tom Harvie-Clark & Eric McRory 29 October 2003

  2. Tom Why bother? What’s required? Eric How we do it? What we do? Overview

  3. Why Bother? Required • Article 5 (& Annex III), Article 9 of WFD • Section 5 (2) (c) of WEWS Act Crucial to our understanding Opportunity • Take action in most effective way • Avoid inappropriate action

  4. What Economics is Required? • Economic analysis of water use (end 2004) • Economic importance of water use • Dynamics of Water Use (Baseline Scenario) • Recovery of costs of water services • Allow judgements about most cost-effective combination of measures

  5. What Economics is Required? • Water Pricing policies to provide “adequate” incentive to use water resources efficiently, taking account of polluter pays principles • “adequate contribution” disaggregated to at least industry, household and agriculture groups • recovery includes environmental and resource (opportunity) costs • can have regards to social, environmental and economic effects and can continue established practices • Report in RBPM

  6. What Economics is Required? • Role in justifying Derogations • Heavily modified water bodies • Time or objective derogation • Disproportionate cost, not just cost>benefit

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