A review on cost-effectiveness analysis of agri-environmental measures related to the EU WFD: Key issues, methods, and applications
The European Water Framework Directive (WFD) explicitly integrates economics into water management and water policy in Europe. Specifically, Article 11 and Annex III of the Directive call for a cost-effectiveness analysis (CEA) of alternative mitigation measures as a requirement in formulating Programme of Measures (PoMs) to achieve 'good ecological status' for all waters in Europe. As agriculture is supposed to be the major contributor to diffuse water pollution, CEA of agri-environmental measures has been given paramount importance in establishing the PoMs. This paper summarises the status, significance, and methodological limitations of WFD-related CEA studies in Europe. Cases from the United Kingdom, countries surrounding the Baltic Sea and central and southern Europe were included in the review. Review results indicate that most WFD-related CEA studies: (1) were based on models of 'representative' farms without capturing the variability among real-world farms; (2) concentrate on a single ecological effect of measures or are based on cost estimates of the sectors directly involved in the pollutant-reduction programme (i.e., co-benefits, trade-offs, and external costs were not examined); and (3) did not incorporate uncertainties in both cost and effectiveness estimates. Based on the review results, the paper suggests policy implications and recommendations for future research in the field.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stavins Robert N., 1995. "Transaction Costs and Tradeable Permits," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 133-148, September.
- Bartolini, F. & Bazzani, G.M. & Gallerani, V. & Raggi, M. & Viaggi, D., 2007. "The impact of water and agriculture policy scenarios on irrigated farming systems in Italy: An analysis based on farm level multi-attribute linear programming models," Agricultural Systems, Elsevier, vol. 93(1-3), pages 90-114, March.
- Barton, D.N. & Saloranta, T. & Moe, S.J. & Eggestad, H.O. & Kuikka, S., 2008. "Bayesian belief networks as a meta-modelling tool in integrated river basin management -- Pros and cons in evaluating nutrient abatement decisions under uncertainty in a Norwegian river basin," Ecological Economics, Elsevier, vol. 66(1), pages 91-104, May.
- Paulsen Charles M. & Wernstedt Kris, 1995. "Cost-Effectiveness Analysis for Complex Managed Hydrosystems: An Application to the Columbia River Basin," Journal of Environmental Economics and Management, Elsevier, vol. 28(3), pages 388-400, May.
- Brady, Mark, 2003. "The relative cost-efficiency of arable nitrogen management in Sweden," Ecological Economics, Elsevier, vol. 47(1), pages 53-70, November.
- McSweeny, William T. & Shortle, James S., 1990. "Probabilistic Cost Effectiveness In Agricultural Nonpoint Pollution Control," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 22(01), July.
- Ing-Marie Gren & Paul Jannke & Katarina Elofsson, 1997. "Cost-Effective Nutrient Reductions to the Baltic Sea," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 10(4), pages 341-362, December.
- Schleiniger, Reto, 1999. "Comprehensive cost-effectiveness analysis of measures to reduce nitrogen emissions in Switzerland," Ecological Economics, Elsevier, vol. 30(1), pages 147-159, July.
- Zevi Azzaino & Jon M. Conrad & Paul J. Ferraro, 2002. "Optimizing the Riparian Buffer: Harold Brook in the Skaneateles Lake Watershed, New York," Land Economics, University of Wisconsin Press, vol. 78(4), pages 501-514.
- Elizabeth Marshall & Frances Homans & Robert Haight, 2000. "Exploring Strategies for Improving the Cost Effectiveness of Endangered Species Management: The Kirtland's Warbler as a Case Study," Land Economics, University of Wisconsin Press, vol. 76(3), pages 462-473.
- Fröschl, Lena & Pierrard, Roger & Schönbäck, Wilfried, 2008. "Cost-efficient choice of measures in agriculture to reduce the nitrogen load flowing from the Danube River into the Black Sea: An analysis for Austria, Bulgaria, Hungary and Romania," Ecological Economics, Elsevier, vol. 68(1-2), pages 96-105, December.
- Macmillan, Douglas C. & Harley, David & Morrison, Ruth, 1998. "Cost-effectiveness analysis of woodland ecosystem restoration," Ecological Economics, Elsevier, vol. 27(3), pages 313-324, December.
- Elofsson, Katarina, 2010. "Cost-effectiveness of the Baltic Sea Action Plan," Marine Policy, Elsevier, vol. 34(5), pages 1043-1050, September.
- Carlo Fezzi & Dan Rigby & Ian J. Bateman & David Hadley & Paulette Posen, 2008. "Estimating the range of economic impacts on farms of nutrient leaching reduction policies," Agricultural Economics, International Association of Agricultural Economists, vol. 39(2), pages 197-205, 09.
- Gürlük, Serkan & Ward, Frank A., 2009. "Integrated basin management: Water and food policy options for Turkey," Ecological Economics, Elsevier, vol. 68(10), pages 2666-2678, August.
- Benjamin S. Rashford & Richard M. Adams, 2007. "Improving the Cost-Effectiveness of Ecosystem Management: An Application to Waterfowl Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(3), pages 755-768.
- Semaan, Josephine & Flichman, Guillermo & Scardigno, Alessandra & Steduto, Pasquale, 2007. "Analysis of nitrate pollution control policies in the irrigated agriculture of Apulia Region (Southern Italy): A bio-economic modelling approach," Agricultural Systems, Elsevier, vol. 94(2), pages 357-367, May.
- Wanhong Yang & Chaodong Sheng & Paul Voroney, 2005. "Spatial Targeting of Conservation Tillage to Improve Water Quality and Carbon Retention Benefits," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 53(4), pages 477-500, December.
- Zylicz, Tomasz, 2003. "Instruments for water management at the drainage basin scale," Ecological Economics, Elsevier, vol. 47(1), pages 43-51, November.
- Vatn, Arild & Bakken, Lars & Botterweg, Peter & Romstad, Eirik, 1999. "ECECMOD: an interdisciplinary modelling system for analyzing nutrient and soil losses from agriculture," Ecological Economics, Elsevier, vol. 30(2), pages 189-206, August.
- Atkinson, Scott E. & Lewis, Donald H., 1974. "A cost-effectiveness analysis of alternative air quality control strategies," Journal of Environmental Economics and Management, Elsevier, vol. 1(3), pages 237-250, November.
- Volk, Martin & Hirschfeld, Jesko & Dehnhardt, Alexandra & Schmidt, Gerd & Bohn, Carsten & Liersch, Stefan & Gassman, Philip W., 2008. "Integrated ecological-economic modelling of water pollution abatement management options in the Upper Ems River Basin," Ecological Economics, Elsevier, vol. 66(1), pages 66-76, May.
- Madhu Khanna & Wanhong Yang & Richard Farnsworth & Hayri Önal, 2003. "Cost-Effective Targeting of Land Retirement to Improve Water Quality with Endogenous Sediment Deposition Coefficients," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 538-553.
- Evy Crals & Lode Vereeck, 2005. "Taxes, Tradable Rights and Transaction Costs," European Journal of Law and Economics, Springer, vol. 20(2), pages 199-223, September.
- Yang, Wanhong & Khanna, Madhu & Farnsworth, Richard & Onal, Hayri, 2003. "Integrating economic, environmental and GIS modeling to target cost effective land retirement in multiple watersheds," Ecological Economics, Elsevier, vol. 46(2), pages 249-267, September.
- Lacroix, Anne & Beaudoin, Nicolas & Makowski, David, 2005. "Agricultural water nonpoint pollution control under uncertainty and climate variability," Ecological Economics, Elsevier, vol. 53(1), pages 115-127, April.
- Elofsson, Katarina, 2003. "Cost-effective reductions of stochastic agricultural loads to the Baltic Sea," Ecological Economics, Elsevier, vol. 47(1), pages 13-31, November.
- Ribaudo, Marc O. & Heimlich, Ralph & Claassen, Roger & Peters, Mark, 2001. "Least-cost management of nonpoint source pollution: source reduction versus interception strategies for controlling nitrogen loss in the Mississippi Basin," Ecological Economics, Elsevier, vol. 37(2), pages 183-197, May.
When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:70:y:2011:i:6:p:1021-1031. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.