Implementation of Water Framework Directive Obligations in Hungary: Estimating Benefits of Development Activities in Two Pilot Areas

Abstract

Implementation of the Water Framework Directive entails several tasks for European Union member states including Hungary. One important issue is the estimation of economic benefits resulting from improvement of water quality and condition. Contingent valuation has been used in Hungary in two pilot areas: the natural river Tur and the artificial and less important Kallay Channel. Both areas can be found in the north-east of the country. Household willingness to pay for an improvement in the state of the water bodies is similar for both; most are ready to dedicate only a small proportion of their monthly income, equivalent to 0.5%. The relatively high proportion of zero offers can be mainly explained by the low level of income characteristic of the surveyed areas. The results of the survey can be used in a cost-benefit analysis to provide a basis for future programmes as well as coordinating international efforts for improving the water quality of catchment areas. In addition, companies also can make use of those results for their environmental performance evaluation processes.