Water Policy : An economic approach and application to farm pollution

Abstract

In Brittany, water policy gives little results compared to the money involved. Compared to northern European countries the French government does not enforce the economic principles of the water framework directive (WFD). The WFD defines the environmental target as an economic optimum that maximises the collective value or minimises social costs. Further, the WFD states that the water policy has to enforce cost recovery and the polluter-pay principle (PPP). The WFD economic principles are compared to the French policy to reduce animal pollution which is based on a hypertrophic set of regulation and rejection of the PPP. This explains why producers do not have incentives to reduce pollution by using least cost solutions like manure spreading. We suggest limiting the state’s missions missions to defining and enforcing standards via the PPP and to reducing regulations therefore lifting the obstacles to manure spreading.