Community Research and Development Information Service - CORDIS

Study on water economics

The European Commission, DG XI, has published an open invitation to tender (Ref. XI/BI/97/0008) for the completion of a study on water economics.

The objective of the study is to provide, from a welfare economic perspective, information for the follow-up to the Commission's proposal for a Framework Directive for Community action in the field of water policy. The consultants contracted will be required to:

- Produce a coherent set of practical methods that can be used for estimating the environmental costs (and benefits), and resource depletion costs, of water uses at the river basin level, on the basis of a comprehensive analysis of available evidence in literature, field studies and own experience;

- Collect all necessary local data and estimate, on the basis of methods detailed in the tender documents, for a selection of three or four river basins or sub-catchment areas, the economic costs of all relevant water uses. Another set of estimates shall be established in a scenario approach for the year 2010. The consultant shall separate the cost component that would result from a full-cost recovery by economic sector scenario;

- For the river basins identified in the tender documents, collect the necessary data and estimate the direct and indirect demand effects and environmental and socio-economic effects of changing from current price levels to full-cost recovery levels in the year 2010, for all water uses, using appropriate models and realistic investment scenarios.
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