A classification approach of cost effective management measures for the improvement of watershed quality

The purpose of this paper is to provide a classification of the literature concerning the application of the cost-effectiveness analysis (CEA) to evaluate management measures for the improvement of watershed quality. This literature focuses on eutrophication from agricultural runoff and industrial activities. The knowledge of the cost-environmental effectiveness of a management practice/technique or of a market-based instrument (economic instruments, environmental agreements) as well as an understanding of which quantitative and qualitative data are needed for the application of CEA could be used as a tool, in the management processes, for the identification of the appropriate policy measures for each case study-watershed. From this classification effort results that according to the environmental target and the considered assumptions for the leaching of nutrients different management measures and different mix of these measures provide a cost-effective diminution of watershed pollution. The decrease of agricultural run-off water pollution is a priority and organic farming, new tillage practices, and catch crops are recommended. Moreover, wetlands restoration is described as a low-cost option. Tradable permits and environmental agreements under an appropriate management design are proposed for the decrease of pollutants caused by industrial activities. However, the positive interaction of these measures with stakeholders is the decisive factor for their application and effectiveness and also the least costly way.