The social benefits of restoring water quality in the context of the Water Framework Directive: A comparison of willingness to pay and willingness to accept.

The Water Framework Directive (WFD) is by far the most important piece of water legislation in Europe for the coming decades. Its main aim is to achieve "good ecological status" for all water resources by 2015. The economic valuation of the non-market benefits derived from improving water quality is an important input in assisting the design and implementation of efficient and effective water management policies. In this study, the contingent valuation method has been applied with a double purpose. On the one hand, we have estimated the value of a hypothetical improvement in water quality of a river asking individuals about their willingness to pay, and on the other hand, the issue of exemptions contemplated in the WFD has been addressed surveying people on their willingness to accept compensation if projected improvements were not carried out. Finally, a comparison of costs and benefits in a cost-benefit framework shows that the net present value of the water quality policy is positive both if we consider willingness to pay estimates as willingness to accept estimates, therefore this policy appears desirable from a social perspective.