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Cost-Benefit Analysis in a Framework of Stakeholder Involvement and Integrated Coastal Zone Modeling

  • Kinell, Gerda


    (Enveco Environmental Economics Consultancy Ltd)

  • Söderqvist, Tore


    (Enveco Environmental Economics Consultancy Ltd)

  • Elmgren, Ragnar


    (Department of Systems Ecology)

  • Walve, Jacob


    (Department of Systems Ecology)

  • Franzén, Frida


    (Södertörn University, Royal Institute of Technology (KTH) and Enveco Environmental Economics Consultancy Ltd.)

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    Active involvement of local stakeholders is currently an increasingly important requirement in European environmental regulations such as the EU Water Framework Directive (WFD) and the EU Marine Strategy Framework Directive (MSFD). The same is true for economic analyses such as cost-benefit analysis (CBA). For example, the Swedish WFD implementation requires i) quantification of cost and benefits of proposed measures and ii) stakeholder involvement. How can these two requirements be integrated in practice? And can such requirements facilitate implementation of projects with a potential net benefit? This paper presents a stepwise CBA procedure with participatory elements and applies it for evaluating nutrient management options for reducing eutrophication effects in the coastal area of Himmerfjärden SW of Stockholm, Sweden. The CBA indicates a positive net benefit for a combination of options involving increased nitrogen removal at a major sewage treatment plant, creation of new wetlands and connecting a proportion of private sewers to sewage treatment plants. The procedure also illustrates how the interdisciplinary development of a coupled ecological-economic simulation model can be used as a tool for facilitating the involvement of stakeholders in a CBA.

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    Paper provided by CERE - the Center for Environmental and Resource Economics in its series CERE Working Papers with number 2012:1.

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    Length: 31 pages
    Date of creation: 04 Jan 2012
    Handle: RePEc:hhs:slucer:2012_001
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    1. Egan, Kevin J. & Herriges, Joseph A. & Kling, Catherine L. & Downing, John A., 2004. "Valuing Water Quality As a Functionof Water Quality Measures," Staff General Research Papers Archive 12210, Iowa State University, Department of Economics.
    2. Östberg, Katarina & Håkansson, Cecilia & Hasselström, Linus & Bostedt, Göran, 2011. "Benefit Transfer for Environmental Improvements in Coastal Areas: General vs. Specific Models," CERE Working Papers 2011:2, CERE - the Center for Environmental and Resource Economics.
    3. Grimble, Robin & Wellard, Kate, 1997. "Stakeholder methodologies in natural resource management: a review of principles, contexts, experiences and opportunities," Agricultural Systems, Elsevier, vol. 55(2), pages 173-193, October.
    4. Human, Brett A. & Davies, Amanda, 2010. "Stakeholder consultation during the planning phase of scientific programs," Marine Policy, Elsevier, vol. 34(3), pages 645-654, May.
    5. Jenkins, G.P., 1998. "Evaluation of Stakeholder Impacts in Cost-Benefit Analysis," Papers 631, Harvard - Institute for International Development.
    6. Östberg, Katarina & Hasselström, Linus & Håkansson, Cecilia, 2010. "Non-market valuation of the coastal environment - uniting political aims, ecological and economic knowledge," CERE Working Papers 2010:10, CERE - the Center for Environmental and Resource Economics.
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