1. Economic Assessment of Groundwater Protection Project financed by the European Commission Consultants: Eduard Interwies Ecologic, Institute for International and European Environmental Policy, Germany Jean-Daniel Rinaudo (Project leader) BRGM, French Geological Survey, France

2. Economic assessment of groundwater protection Objective of the project Provide economic input to the development of the groundwater daughter directive (based on Art. 17, WFD), by: show the consequences of the choice of different definitions of « good status » (criteria and target values) on pollution decrease costs and benefits --> do prospective benefits of a criteria definition justify the anticipated costs of reaching this target? --> covers one perspective of setting quality criteria in the daughter directive, to be integrated with others!

3. Economic assessment of groundwater protection Main elements of the project u (three) representative case studies u Literature review u Member States analysis

4. Economic assessment of groundwater protection Case study objectives and methodology u Objective –identify costs and benefits for various quality targets –partial monetary valuation u Methodology –Identify actors generating / suffering from pollution –Costs of production changes required to reduce pollution –Benefits induced by quality improvement u Sources of information –interviews with stakeholders and experts –existing secondary data

5. Economic assessment of groundwater protection The Potash mining Field of Alsace u Pollution –Point source - ancient - salt u What is at stake ? –Costs: investments to restore water quality (pumping wells) –Financial benefits: –drinking water treatment –use of water for irrigation –industrial development 5 km Polluted area (100 km²) Aquifer boundaries Mining deposits NaCL pollution

6. Economic assessment of groundwater protection Reducing diffuse agricultural pollution in the Rhine valley alluvial aquifer u Pollution –Significant area affected –Economic consequences already observed u What is at stake ? –Costs: Changing agricultural practices Investment in WWTPs –Benefits: Drinking water sector Food & beverage industry 25 to 50mg/l >50mg/l < 10 mg/l 10 to 25mg/l Nitrates (1997) Source: Région Alsace

7. Economic assessment of groundwater protection Point source pollution of the karst Aquifer of Causse du Larzac u Pollution issues Unpolluted but new risks: –Motorway (salt, heavy metals) –Waste water treatment plants u What is at stake –Costs: investments (motorway / WWTPs) –Benefits: Drinking water sector Tarn river Hérault river Mediteranean Sea Montpellier Millau A75 Causse du Larzac aquifer Lodève Beziers

8. Economic assessment of groundwater protection Literature Review u Objectives –Compile results of existing studies on cost- benefit analysis of groundwater protection –Use these to highlight the economic incidence of future potential decisions u Sources of information –Research papers & reports –International grey literature –Studies conducted by authorities/consultants

9. Economic assessment of groundwater protection Member States Analysis u Objective –Identify the major economic stakes related to groundwater protection in each country –Present points of view of Member States (and candidate countries) on the most recent draft of the daughter directive u Sources of information –(telephone) Interviews with representatives of the Member States (and candidate countries)

10. Economic assessment of groundwater protection Project milestones u Start of the project: September 2002 u Preliminary results of one case study (Potash): December 2002 u Draft literature review: February 2003 u Interviews for the Member States Analysis/ synthesis: February/March 2003 u Results of Member States Analysis: March 2003 u Final results of first case study/preliminary results of the other two case studies: March 2003 u Final report (final literature review, results of case studies, Member States Analysis, general synthesis and conclusions): May 2003

11. Economic Assessment of Groundwater Protection Project financed by the European Commission Consultants: Eduard Interwies Ecologic, Institute for International and European Environmental Policy, Germany Jean-Daniel Rinaudo (Project leader) BRGM, French Geological Survey, France