Environmental and Resource Costs Under Water Scarcity Conditions: An Estimation in the Context of the European Water Framework Directive

The European Water Framework Directive (WFD) requires the good ecological status of surface water bodies, which implies the improvement of both their physicochemical condition, as well as their flow and continuity. The WFD prescribes the assessment of environmental and resource costs and benefits associated with implementing these improvements. The recent literature focuses almost exclusively on the assessment of the economic values related to quality aspects. However, in much of southern Europe, fulfilling the WFD goals will greatly depend on maintaining sufficient water flow, as well. This study aims to fill this gap by assessing the non-market value of allocating enough water to the environment to ensure environmental services are sustained when water is scarce. The non-market value of guaranteeing water supply for secondary household uses is also estimated. Using the Guadalquivir River Basin in Spain as a case study, a choice experiment is applied with scenarios characterized by varying water flow levels and accompanying environmental impacts, and a different frequency of household water restrictions. The results show that the population derives significant benefits not only from the direct use of water, but that also holds non-use values related to the ecological status, although the latter has a considerably lower impact on consumer surplus. Additionally, we conclude that the costs of implementing the water saving measures currently included in the Program of Measures seem to be proportionate to its benefits in this case. © 2011 Springer Science+Business Media B.V.