Lessons from economic theory to respond to the challenge of the derogation to the Water Framework Directive

Abstract

The Water Framework Directive (WFD) represents a major change in the European environmental policy as it presents a united and consistent legal framework whose main aim is to prevent and reduce water pollution in Europe, which is considered as excessive. In order to reduce the water pollution, the WFD is setting a binding ambient standard: the « good status » requirement. It will be possible for member states to obtain an exemption by showing that pollution control costs are excessive compared to environmental benefits on the basis of a cost-benefit analysis. Thus, an economic literature review is required for guiding the choice of the valuation methods.