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Assessing Cost Recovery

A New Comparative Framework in Line with WFD Article 9

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Britta Ammermüller

This study proposes a comparative accounting framework for assessing cost recovery of water supply and sewerage services for households and agriculture in line with the requirements of Article 9 of the EU Water Framework Directive (WFD). It provides an integrative analysis of the partly contradictory objectives of Article 9 and the Directive’s approach to cost recovery. The book defines cost categories and accounting guidelines in line with the specific requirements of WFD Article 9. On this basis, an integrative framework for analysing different financing schemes for water services provision and their compliance with the objectives of Article 9 is developed, along with a pragmatic approach for the incorporation of environmental and resource costs in the overall cost recovery analysis.

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List of Boxes 17

Extract

17 List of Boxes Box 1: Economics in the WFD – scattered evidence ................................... 34 Box 2: Article 9 of the Water Framework Directive .................................... 44 Box 3: Approaches to cost-recovery – four polar cases ............................. 80 Box 4: Economic valuation of benefits: revealed and stated preference methods ........................................................................................... 146 Box 5: General guidelines for the cost assessment .................................... 163 Box 6: Evaluation of existing internalization instruments .......................... 191 Box 7: The role of expert judgement .......................................................... 203 Box 8: Earmarking of revenues (internalisation instruments) .................... 217 Box 9: The financing scheme for the reconstruction of the Emscher river basin ................................................................................................. 293

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