Economic Instruments in Water Policy
In two presentations Ina Krüger (Ecologic Institute) introduced the work of Ecologic Institute at the 13th International Conference "EUROPE-INBO 2015" for the implementation of the European Water Directives. In a short presentation at the round table 'The financing of water policy and economic analysis' Ina Krueger presented the results of an evaluation of the water abstraction charge and the compensation payments to farmers in the state of Baden-Württemberg (Germany). The presentation slides are available for download.
In her speech and the subsequent round table discussion with international representatives of river basin organizations, European Ministries and international organizations, Ina Krüger provided insight into the functioning and effectiveness of compensation payments for improving groundwater quality in a policy mix.
The evaluation showed, that the SchALVO and the MEKA programmes, which provided financial compensation for environmentally friendly practices to farmers, have contributed to a reduction of Nitrate contamination in groundwater bodies. Critical success factors for the functioning of mixes of economic policy instruments are transparency in the selection, design and implementation of economic instruments, as well as a sound and well defined monitoring concept.
The presentation was based on work of Dr. Manuel and Jennifer Müller-Gulland in the EPI- WATER project, which assessed the effectiveness and the efficiency of Economic Policy Instruments in achieving water policy goals, and identified the preconditions under which they complement or perform better than alternative (e.g. regulatory or voluntary) policy instruments.