METHODOLOGY FOR ECONOMIC EVALUATION OF WATER MANAGAMENT

Abstract

Economic analysis is the key requirement of EU Water Framework Directive. On a level of river basin area, economic analysis includes three dimensions: 1. economic characterization of water use: current and future projected economic importance of capacities and potentials of water resources; 2. program of measures for achieving good water status: cost-benefit analyses, cost efficiency analyses, cost scale and influence: and 3. water services price policies: evaluation of institutional alternatives for recovery of water services costs, including analysis of cost distribution. The analysis includes leveling of current and projected water resources data with costs and benefits of water services on the level of river basin area within local communities and integrated on sub-region level.