Cost–Benefit Analysis and Water Resources Management

Cost–Benefit Analysis and Water Resources Management

Edited by Roy Brouwer and David Pearce

How are the economic values of water and water quality accounted for in policy and project appraisal? This important book gives an overview of the state-of-the-art in Cost–Benefit Analysis (CBA) in water resources management throughout Europe and North America, along with an examination of current applications.

Chapter 7: Cost–benefit Analysis and Complex River Basin Management in the Stockholm Archipelago in Sweden

P. Frykblom, H. Scharin and T. Söderqvist

Subjects: economics and finance, environmental economics, valuation, environment, environmental economics, management natural resources, valuation, water


7. Cost–benefit analysis and complex river basin management in the Stockholm archipelago in Sweden P. Frykblom, H. Scharin, T. Söderqvist and A. Helgesson 1. INTRODUCTION The main objectives of this chapter are twofold. First, a general overview will be given of the use of cost–benefit analysis (CBA) in Sweden as part of project evaluations including environmental impacts. Questions which will be addressed are: who are the users of this instrument and what determines whether CBA is used or not? Some Swedish universities and research institutes have a tradition of conducting CBA as part of their environmental economics research, but who are the users of CBA outside academia, especially in water-related projects? Second, we will illustrate how state-of- theart CBA is applied to a complex Swedish water management example. This case study demonstrates the need for integrating both natural and socioeconomic science and policy design. The case study is considered representative of the kind of knowledge and expertise needed in cost–benefit analyses of similar issues in Sweden or elsewhere. This chapter is based upon two studies carried out independently of each other. The overview of the use of CBA by Swedish governmental agencies and non-governmental organizations was carried out in 2002 by Frykblom and Helgesson (2002) on behalf of the Swedish Environmental Protection Agency. The main findings of their survey are presented in section 2. The second study is a CBA study of eutrophication reduction measures in the Stockholm Archipelago. This CBA study was...

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