A Comparative Study, Volume 2
- The Fondazione Eni Enrico Mattei series on Economics, the Environment and Sustainable Development
Edited by Anil Markandya and Marialuisa Tamborra
Gianluca Crapanzano, Marcella Pavan and Alistair Hunt 12.1 INTRODUCTION The purpose of this study is to establish linkages between sources of environmental damage and concentration levels or load of pollutants, thereby enabling the identiﬁcation of contributions to damage on a sectoral and geographical basis. This approach is, in principle, suitable for water pollution but its application appears more problematic in the case of water than with atmospheric pollution. In this chapter we ﬁrst develop a possible framework for the estimation of damages caused by water pollution. This uses, as a willingness-to-pay (WTP) proxy, the share of expenditure on water treatment that can be attributed to each industrial sector and to households on the basis of the relative contribution to water pollution by each sector. Whilst making the link between source and damage, this approach has not yet yielded monetary values since data on water treatment expenditure are scarce. We then present an initial exercise in the valuation of one type of damage using WTP techniques as a case study for the type of work which could be developed in the future (that is, the case of angling in the UK). Although synthesis of these two approaches is clearly possible we present them as separate elements in this chapter since we do not yet have suﬃcient country data to implement this synthesis. In both approaches, the application is best carried out at the river catchment level in order to consider all the aspects inﬂuencing water quality in a...
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