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European Review of Agricultural Economics Advance Access originally published online on August 18, 2006
European Review of Agricultural Economics 2006 33(3):391-413; doi:10.1093/eurrag/jbl019
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© Oxford University Press and Foundation for the European Review of Agricultural Economics 2006; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org

Estimating the benefits of water quality improvements under the Water Framework Directive: are benefits transferable?

Nick Hanley

Economics Department, University of Stirling, UK

Sergio Colombo

Agricultural Economics Department, IFAPA Junta de Andalusia, Spain

Dugald Tinch

Economics Department, University of Stirling, UK

Andrew Black

Geography Department, University of Dundee, UK

Ashar Aftab

University of Durham, UK

Corresponding author: Nick Hanley, Economics Department, University of Stirling, Stirling FK9 4LA, Scotland, UK. Telephone: +44 1786 466410. Fax: +44 1786 467469. E-mail: n.d.hanley{at}stir.ac.uk

Received November 2005; Revision received June 2006. The Water Framework Directive sets an objective of ‘Good Ecological Status’ for water bodies across the EU. Non-point pollution from agriculture is a major reason for the failure of rivers in the UK to meet this target. In this paper, we use choice experiment methodology to test the transferability of benefit estimates of water quality improvements for two small catchments where agricultural-source non-point pollution and irrigation water abstraction are the main threats to ecological status. We also investigate the most appropriate techniques to apply to transfer testing, including allowing for correlation between preferences for environmental attributes, and testing for acceptable differences between transferred and original values.

Keywords: Water Framework Directive, benefits transfer, choice experiments, non-point pollution, irrigation


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