Recycled water valuation as a corollary of the 2000/60/EC water framework directive

The principles of the 2000/60/EC Water Framework Directive can evidently be extended to cover the case of recycled water, which is a product of wastewater treatment. The consideration of recycled water as a resource, in a way to contribute to the preservation of fresh water, its pricing, the information and consultation of the public on this matter are only some of the derivatives of the directive. The economic analysis of recycled water can be viewed as a major derivative of this directive, which will lead to the assignment of a value and subsequently a price on recycled water. A price will in turn lead to an effective and fair allocation of recycled water. In this paper the supply and demand of recycled water are drawn and the market equilibrium is discussed for the short and long run horizon. Information and its result, i.e. learning effects, are expected to influence positively the quantity consumers are willing to use and the price they are willing to pay for recycled water. (C) 2004 Elsevier B.V. All rights reserved.