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On the Choice of Cost and Effectiveness Indicators in the Context of the European Water Policy

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  • Sinabell, Franz
  • Schmid, Erwin

Abstract

The Water Framework Directive requires EU Member States to analyse economic impacts of the Directive's implementation. To reach a "good status", instruments have to be judged according to their cost-effectiveness. We evaluate costs and effects of measures to reduce nitrate emission of Austrian agriculture. Results are based on a model that integrates production decisions with stochastic environmental outcomes. The Directive's requirement to involve stakeholders may make it necessary to take a large number of indicators into consideration. We find that alternative calculations of the effectiveness criterion give different rankings of the most effective combination of measures.

Suggested Citation

  • Sinabell, Franz & Schmid, Erwin, 2006. "On the Choice of Cost and Effectiveness Indicators in the Context of the European Water Policy," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25394, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25394
    DOI: 10.22004/ag.econ.25394
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    1. Ollikainen, Markku & Lankoski, Jussi E., 2005. "Multifunctional Agriculture: The Effect of Non-Public Goods on Socially Optimal Policies," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24611, European Association of Agricultural Economists.
    2. L. Harrison‐Mayfield & J. Dwyer & G. Brookes, 1998. "The Socio‐Economic Effects of the Countryside Stewardship Scheme," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(2), pages 157-170, June.
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