Allocation of Costs and Benefits in the Water Framework Directive: A Dutch Exploration - Water and Agriculture: Sustainability, Markets and Policies - page 29

Chapter 3.
Allocation of Costs and Benefits in the Water Framework Directive:
A Dutch Exploration

Marlies Batterink 1

Different sectors in the Netherlands, not least agriculture, have a steep hill to climb to
meet the requirements for implementation of the Water Framework Directive (WFD).
Considerable investments in water (quality) management are expected in the coming
decade. The ￿ search for sustainable development possibilities for all sectors involved in
this process dominates the discussion in the process of an economic analysis within the
WFD implementation. The Netherlands strives for providing possibilities and perspective
for many different activities within a small area. To prevent a disproportionate burden
being placed on a particular sector it is important to strike the best possible balance
between the various interests in rural areas, such as nature management and agriculture,
and divide the costs associated with implementation of the WFD proportionally between
the different players. A Social Cost Benefit Analysis (SCBA) where nature and
environment are included illustrates the consequences for wealth in the Netherlands of
implementing the measures to realise the goals of the WFD, but does not illustrate
consequences for cost allocation. Via analyses of the separate items, it will be possible to
gain insight into this matter. Ultimately, determining which measures are best suited to
the implementation of the WFD and decisions on cost allocation, based on the results of a
Social Cost Benefit Analysis and a Cost Effectiveness Analysis (CEA), is a matter of
political choice.

Introduction

In this paper the implementation of the Water Framework Directive (WFD) in the
Netherlands is discussed. The Dutch ministry of Agriculture, Nature and Food Quality
(LNV) is intensively involved in the process of implementation, although the Ministry of
Transport, Public Works and Water Management (V&W) bears prime responsibility for
the implementation of the Directive. From this point of view, the issues on a balance in
water for nature and environment in the implementation trajectory are considered
concerning the economic analysis, which has to be carried out for the WFD. Challenges
and particular points of interest are identified at the different stages of the process.

1.

Water Section, Department of Rural Affairs, Ministry of Agriculture, Nature and Food Quality,
The Hague, the Netherlands.