An initial economic evaluation of water quality improvements in the Randers Fjord, Denmark

Eutrophication of estuarine and coastal waters has only been recognised as a potential problem since the early 1980s. This problem is being addressed by the European Union through the implementation of recent water quality legislation, which also calls for an economic analysis relating to its implementation. This paper examines the benefits and costs of reduced eutrophication of the Randers Fjord in Denmark, with a primary focus on assessing individual preferences for water quality improvements, using a contingent valuation survey approach. Initial findings of the survey are presented that offer support for funding an action plan to improve the ecological status of the Randers Fjord, as required by the Water Framework Directive. The paper highlights the considerable costs required to abate nutrient emissions into the Fjord, but identifies a need for greater cost evidence at the catchment level.