Abstract
The EU Water Framework Directive (WFD) explicitly requires the full cost recovery of water services, including the environmental costs incurred from the damage that water uses inflict on the environment. Although flow regulation by river damming is one of the most prominent human impact on fresh water ecosystems its environmental costs are not properly included in water pricing. This paper presents a novel approach to assessing the environmental costs of flow regulation based on the polluter-pays principle. The methodology includes three steps: (i) assessing the admissible range of regulated flow variability, derived from the natural flow regime variability, (ii) estimating the daily environmental impact of regulated flows according to deviations from the admissible range of flow variability, and (iii) calculating the environmental costs of flow regulation. The procedure is applied to four river case studies in Spain, UK and Norway. The advantages over other water cost valuation methods are discussed. The methodology enlarges the current recognition of environmental costs of water use and represents a practical management tool within the WFD context, encouraging transparency and stakeholder communication.
Highlights
In recent decades, economic assessments have assumed a key role in water policy, providing valuable information to support the sustainable development, conservation and use of water resources (Turner et al 2000; Balana et al 2011)
The relevance of our study lies in: (i) the application of the polluter-pays principle strongly recommended by the Water Framework Directive (WFD), focusing on the concept of Buser pays^ as opposed to Bability to pay^; (ii) the objectivity when assessing the environmental impact of flow regulation according to deviations from the natural flow regime, an calculating environmental costs proportionally to the impacts; (iii) the flexibility of the approach in valuing costs according to spatiotemporal specific river constraints; and (iv) the use of simple graphs and calculations that facilitate transparency and stakeholder communication
Dams and reservoirs can be extremely disruptive to river ecosystems, and their environmental damage needs to be included in water pricing policy
Summary
Economic assessments have assumed a key role in water policy, providing valuable information to support the sustainable development, conservation and use of water resources (Turner et al 2000; Balana et al 2011). Recognizing the full value of water is important for the rational allocation of water as a scarce resource, whereas charging for water value may represent an economic instrument to affect behaviour towards conservation and efficient water usage (Pérez-Blanco et al 2015), and ensures full cost recovery when environmental costs are properly internalized (Bithas 2006; Cooper et al 2014). There is a clear need for operational economic instruments that can contribute to sustainable water management. These instruments should include practical procedures for environmental cost assessments that justify charges for water goods and services by reflecting the full cost involved
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