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CHAPTER 5: ECONOMIC ASPECTS OF EUTROPHICATION

5.1. Introduction

5.1.1. Scope of the Chapter

This chapter intends to be an aid for managers and decision-makers, basically for those with a limited background in economics but with the capacity to understand basic economic concepts and incorporate them in the process of decision-making.

Some consideration is given to the discrepancies that persist among the private and the social interests related to water. This discrepancies stem from differences in opportunity costs of individuals and society, particularly when related to environmental resources and ecological functions that are utilised, in one way or the other, in the processes of production and consumption. The concepts of water scarcity and economic value, as well as of externalities and other aspects associated with the allocation of water among uses and users, are emphasised. Some evidences are presented on the economic impacts of eutrophication through the estimation of costs and benefits of reducing eutrophication or improving water quality in general.

The chapter develops the idea of economic instruments for prevention and control of eutrophication, complementary to direct regulation schemes, ranging from diverse types of charges to the development of markets for water rights and emission permits. Section 5.1.2. of this chapter provides information on benefit/cost analysis as a mechanism to evaluate or prioritise different initiatives for prevention, control and restoration of eutrophication, as well as for the improvement of water quality. The chapter also deals with the economic valuation techniques of market and non-market resources, which are not traded within formal markets and/or that, may have no prices at all.

Table of Contents

• Brochure
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• International Year of Forests
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• World Environment Day
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• UNEP Campaign
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