Environmental benefits of reclaimed water: an economic assessment in the context of the Water Framework Directive

Abstract
The European Water Framework Directive (WFD) prescribes that all water bodies in Europe should achieve ‘good ecological status’ (GES). Maintaining a certain water flow is a pre-condition for the achievement of GES in areas of water scarcity. In such areas, reclaimed waste water is seen as a promising measure to keep river flow at a sufficient level. The contingent valuation method is applied here to estimate the non-market environmental benefits of using reclaimed water to maintain river flow levels in the Segura River Basin in south-eastern Spain. The assessment of the economic benefits of specific measures gives policy makers more information than a cost-effectiveness analysis alone, which is currently the most commonly used tool to assess potential measures under the WFD. The results show that the implementation of this measure produces significant non-market benefits that are larger than the investment and operational costs of reclaimed water treatment plants.