Report No FR0353
ECONOMIC IMPACT OF CONTROL STRATEGIES
FR0353
Jun 1993
SUMMARY
I BENEFITS
The development of a methodology to determine the economic implications of possible changes in standards and legislations will provide the water industry with valuable information and allow it to take a proactive and influential role in determining environmental legislation.
II OBJECTIVES
The objectives of this study are :
III REASONS
Environmental pressures and public expectations have risen in the past few years and the likelihood of additional constraints being imposed upon the UK water industry has increased.
The water industry identified a need to assess the economic implications of possible changes in legislation and standards in order to take a more active and valued role in policy discussions.
IV CONCLUSIONS
A methodology to determine the economic implications of possible changes in standards and legislations has been identified.
Two types of cost models within the methodology have been identified, PACE and a statistically derived cost model. PACE has been reviewed and it is believed that the use of statistically derived cost models is the more suitable approach.
Suitable cost models for changes in standards relating to CSOs are not currently available.
The methodology outlined in this report depends on a relatively simple, but comprehensive database, providing national and regional coverage. Such a database does not exist.
V RECOMMENDATIONS
The methodology should be applied to a real case study in a large geographical area for a specific change in environmental standards and legislation.
Data should be collected to develop cost models for CSOs relating to the recent change in standards.
VI RESUME OF CONTENTS
The report explains the justification and reasoning for undertaking this study before addressing the objectives described in Section 2.
A shortlist of five possible changes in standards are described. These form the basis upon which the methodology is designed, which is explained in Section 3.
Sections 4 and 5 discuss the Database and Cost Models requirements of the Methodology. Section 6 describes an illustrative case study showing how the General Methodology outlined in Section 3 would be applied to a specific situation.
A suggested Work programme for Stage 1 of future work is given in Section 7 before the report's conclusions and recommendations.
Copies of the report are available from FWR, price £15.00, less 20% to FWR Members.