Deliverable 6.16

Abstract: Cost-effectiveness analysis report for the Vltava catchment, Czech Republic, including analysis of disproportionality

This report presents the results of a cost‐effectiveness analysis (CEA) of mitigation measures to abate eutrophication in the upper part of the Vltava catchment, in the Czech Republic, and of a disproportionality analysis of costs of mitigation measures and benefits for improved water and ecological quality. The analysis focused on phosphorus (P) reduction from its major sources in the catchment of the Orlík Reservoir, i.e., municipal wastewater discharges, fishpond fisheries, and agriculture (arable and livestock).

The Orlik reservoir is burdened with excessive emissions of P from municipalities (55%), the fishery sector (22%) and agriculture (12%).  A specific regional feature is intensive carp production in many ponds of different sizes. Existing measures implemented between 2007 and 2015 were assessed initially and it was shown that these measures would reduce the P loading by approximately 22 tonnes (i.e. 20% of the total required P reduction) at a total cost of 18M euros. per year. CEA then focused on implementation of measures required to reduce P loading by 50% prevent the massive algal blooms seen in the summer months. Numerous measures for P reduction were identified in discussions with stakeholders and expert specifications. A total of 3,097 measure  applications were analysed within the CEA (of which 1,610 were deemed  effective). The total annual costs were 22M euros/year).

The CEA was followed by a benefit transfer analysis to calculate the benefits accrued by the water quality improvement. We focused on recreational benefits for residents and tourists. Furthermore, due to a lack of available data, we assumed other benefits and the future tourism development through expert judgments. Benefits were calculated on different time scales corresponding to the cost analysis. The first scenario calculated benefits between 2007 and 2015 (amounting to 9.5M euros). The benefits accruing to successful P reduction to 50% were calculated between 2016 and 2035 (74M euros).

The net social benefits in both the scenarios are negative, amounting to 140M euros in the 2007-2015 scenario, and –491M euros in the 2016-2035 scenario.

The cost‐benefit calculations were then amended by stakeholder consultations to reinforce the acceptability of the proposed scenario, distributional effects and wider effects caused by its realisation. Qualitative methods (focused groups, questionnaires) were used to capture those features. This highlighted problems of financing the implementation of proposed applications of measures (small municipalities do not have the money to build the infrastructure, fish  producers and farmers require subsidies to  change their practices above legal requirements). Furthermore, fish producers  denied their contribution to P releases to a large extent.


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