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The economics of the European Water Framework Directive – A retrospective remark focusing on Sweden

Author

Listed:
  • Ek, Kristina

    (Economics Unit, Luleå University of Technology)

  • Persson, Lars

    (CERE and the Department of Economics, Umeå University)

Abstract

The Water Framework Directive (WFD) explicitly acknowledges the role of economics in the process of reaching the environmental quality objectives. The purpose of this paper is to discuss the implementation of the WFD in Sweden based on standard economic theory regarding instruments for cost efficient- and effective solutions to environmental problems. A lesson is that although incentive based instruments are beneficial from a cost-efficiency perspective, the complexities associated with environmental water management may somewhat challenge their implementation. Flexibility is a key issue for cost-effectiveness and, since Swedish water management mainly consists of command-and control instruments, the cost effectiveness is likely to be limited. Furthermore, the paper also points at how policy instruments relate to the economic burden aspect and the PPP – both highlighted in the Directive.

Suggested Citation

  • Ek, Kristina & Persson, Lars, 2016. "The economics of the European Water Framework Directive – A retrospective remark focusing on Sweden," CERE Working Papers 2016:16, CERE - the Center for Environmental and Resource Economics.
    • Handle: RePEc:hhs:slucer:2016_016
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    More about this item

    Keywords

    The economics of the Water Framework Directive; cost efficiency and effectiveness; environmental water management; Polluter Pays Principle;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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