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Water Framework Directive: Testing of Cost Effectiveness Methodology in Transitional and Coastal Waters - WT0709WFD

he aim of this project is to test the practical applicability of the CEA methodology developed by CRP project 2a and 2b, in transitional and coastal water bodies. The project will evaluate the CEA methodology to assess whether it is appropriate to deal with the type of issues raised in TraC water bodies, to ensure that it produces realistic and sensible results and to test its accessibility to non-economists. Where necessary, make recommendations as to how it could be improved.

The practical applicability of the CEA methodology will be tested through using the currently devised methodology for three case study water bodies; The Humber Estuary; the Hamble Estuary; and Inner Liverpool Bay area. These three case study locations have been chosen to represent as full a range as possible of TraC pressures, representing a major transitional water with significant navigation and flood defence interests, water quality issues from point and diffuse sources, plus minor fishing, shellfishing and recreational navigation interests (Humber); a small transitional water with intensive recreational boating interests (Hamble); and a coastal area with a wide range of pressures including navigation, flood and coastal defence, aggregate extraction, renewable energy developments (Inner Liverpool Bay area). The case studies will be undertaken employing a sequential approach following protocols developed under projects 2a and 2b.

Information on pressures will be obtained from the Article 5 characterization review. It is unlikely that there will be sufficient information available in the time scales of this project to fully determine the existing status of these water bodies as the classification schemes are still under development. Expert judgement will be applied to the assessment of current status, the identification of possible gaps between current status and desired status and in the development of potential programmes of measures to address these gaps. In relation to physical pressures affecting the hydromorphology, the HMWB provisions of the Directive will be taken into account in establishing appropriate objectives for the water bodies.

Experiences with the case studies will be reviewed to identify:

· the clarity and completeness of the methodology and therefore the highlighting of any gaps in the methodology;
· opportunities for streamlining or simplifying the methodology;
· the suitability of the methodology for use by the intended user group;
· likely time input requirements associated with following through the assessment methodology for a TraC water body;
· the value-added aspects of the methodology in terms of being capable of generating new combinations of measures to address a potential problem;
· scientific and economic rigour of the methodology; and
· the capability of the methodology to be used to identify cost-effective programmes of measures

Although a review of the current methodologies developed during projects 2a and 2b will be undertaken, it will not be within the remit of this study to revise these protocols, should any necessity for such be identified following review. However any such potential gaps or flaws will be highlighted where they are noted, and recommendations made on alternative approaches or mechanisms in order to address such issues. The case studies will be run employing the methodologies as currently developed.
1. To test and report on the application of the CEA methodology in TraC waters through 3 case studies:

· To test that the CEA methodology can effectively be applied and understood by non-economist in the regulatory bodies with responsibilities in TRAC water bodies

· To assess the practical issues associated with implementing the CEA methodology (such as for example time/duration, IT and data system requirements etc) in TraC waters.

· To test how the methodology deals with some of the problems perceived as being specific to TraC waters (for example recreational boating/affordability concerns particularly in smaller water bodies, as well as navigation dredging and sediment concerns in major estuaries)

· To assess whether the effectiveness and cost criteria developed in the methodology are meaningful in the context of TraC water bodies and, if not, what modification(s) may be required

· To test whether the use of the methodology leads to a program of measures that is demonstrably fair and even-handed across the relevant sectors.

· To assess the value added of the methodology, for example to form an opinion on whether the methodology could come up with new combinations of measures.

· To ensure that when testing the methodology, economic not just financial effects (i.e. adjustments for transfers, non water environmental costs and benefits and wider economic effects) are taken into account.

· To test the cost-effectiveness of national and local measures.

· To test the viability of approaches to deal with uncertainty such as hedging and flexing

· To identify and explore potentially significant issues, gaps, etc. relating to WFD implementation, specifically with regard to the economic analysis and its role in supporting the development and delivery of programmes of measures in transitional and coastal water bodies.

· To test the validity of screening.

2. Prepare a synthesis report identifying gaps and suggestions for further work.

Project Documents
• Final Report : Testing the Methodology for the Determination of the Cost Effectiveness of Measures and Combinations of Measures for Transitional and Coastal Water Bodies in UK Waters under the WFD   (2854k)
Time-Scale and Cost
From: 2005

To: 2006

Cost: £109,270
Contractor / Funded Organisations
ABP Marine Environmental Research Ltd
Environmental Protection              
Water Framework Directive              
Water Quality              
Fields of Study
Water Quality