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A Note on the Implementation of the Economics of the EU Water Framework Directive under Data Limitations: A rapid appraisal approach

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  • Phoebe Koundouri

    (Dept. of International and European Economic Studies, Athens University of Economics and Business)

  • Kyriaki Remoundou
  • Yiannis Kountouris

Abstract

The purpose of this paper is to explore a 'rapid appraisal' methodology for the assessment of the cost recovery level for water services, according to the provisions of the Water Framework Directive (WFD). We argue that a full and rigorous implementation of the economic aspects of this legislation is not always possible because of informational deficiencies and severe time-constraints. Hence some 'second best' approach is required. Results are intended to assist researchers and policy makers in countries facing severe data gaps, to proceed with the implementation of the economic elements of WFD. Based on existing secondary data sources that identify the main pressures for water resources in each river basin district (RBD) and characterize the RBDs according to pollution loads, we calculate the financial, environmental and resource cost associated with the provision of water services for households, agriculture and industry. Then the level of compliance with the WFD's objective of full cost recovery according to the polluter pays principle is evaluated and policy recommendations to improve the current recovery level are discussed. The suggested approach is applied to Greece and results show that existing pricing policies in both domestic and agricultural sectors fail to achieve full cost recovery.

Suggested Citation

  • Phoebe Koundouri & Kyriaki Remoundou & Yiannis Kountouris, 2010. "A Note on the Implementation of the Economics of the EU Water Framework Directive under Data Limitations: A rapid appraisal approach," DEOS Working Papers 1008, Athens University of Economics and Business.
  • Handle: RePEc:aue:wpaper:1008
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    Citations

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    Cited by:

    1. Phoebe Koundouri & Nikos Papandreou & Mavra Stithou & Aris Mousoulides & Yannis Anastasiou & Marianna Mousoulidou & Antonios Antypas & Ioannis Souliotis & Theodoros Mavrogiorgis & Katerina Vasiliou, 2013. "The Economic Characterization of Asopos River Basin," DEOS Working Papers 1311, Athens University of Economics and Business.
    2. Phoebe Koundouri & Nikos Papandreou & Mavra Stithou & Osiel Davila, 2013. "Creating the Institutional Background to Support the Implementation of the Policy Manual," DEOS Working Papers 1317, Athens University of Economics and Business.
    3. Koundouri, Phoebe & Rault, P. Ker & Pergamalis, V. & Skianis, V. & Souliotis, I., 2015. "Development of an integrated methodology for the sustainableenvironmental and socio-economic management of river ecosystems," LSE Research Online Documents on Economics 64458, London School of Economics and Political Science, LSE Library.
    4. Phoebe Koundouri & Osiel Gonzalez Davila, 2013. "The Use of Ecosystem Services Approach in Guiding Water Valuation and Management: Inland and Coastal Waters," DEOS Working Papers 1334, Athens University of Economics and Business.

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