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GTAP Resource #4139

"Denmark’s Fulfillment of the EU Water Framework Directive - Sector and Macroeconomic Implication"
by Jacobsen, Lars-Bo

In December 2011 the Danish Minister for the Environment announced 23 so called water plans. In combination these 23 plans constitutes one combined plan to fulfill Denmark’s obligations towards the EU Water Framework Directive (WFD). The Water Framework Directive was implemented in legislation in EU countries in 2003. The aim of the WFD is to achieve “good ecological status” for all water bodies by 2015 and no later than 2027. It is stated clearly in the WFD that all measures should be selected through cost effectiveness analysis and that the polluter’s pays principle applies.

All water bodies in Denmark have been divided into 23 catchment areas and the current status of each water body has been analyzed as well as the needed action to achieve “good ecological status”. Most actions are related to reduce leaching of nitrogen and phosphorus. Through the cost effectiveness analysis for each water body, the most effective measures have been selected. The selected measures can be divided into four categories; measures targeting the agricultural sectors, measures targeting the ground water resource, measures targeting restoration of watercourses and lakes, measures targeting specific sources. Examples of the selected measures are; construction of wetlands, buffer strips along watercourses, increased usage of catch crops, a range of measures to increase quality in water streams, improved treatment of waste water from remote housing and waste treatment plants.

This paper analyses the sector- and economy wide implication of the short and long run effects of adopting all the selected measures in the 23 water plans using a general equilibrium model of the Danish economy.

We divide the analysis in to two periods; the first is the implementation period where we opt for a typical short run closure. In the implementation period the adoption of the water plans will affect both the supply and demand side of the economy, supply-side measure are related to the agricult...

Resource Details (Export Citation) GTAP Keywords
Category: 2013 Conference Paper
Status: Published
By/In: Presented at the 16th Annual Conference on Global Economic Analysis, Shanghai, China
Date: 2013
Created: Jacobsen, L. (4/14/2013)
Updated: Jacobsen, L. (4/14/2013)
Visits: 2,139
- Land use
- Water availability
- European Union

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