Cost-Benefit Analysis of the Swiss National Policy on Reducing Micropollutants in Treated Wastewater

Contamination of freshwater with micropollutants (MPs) is a growing concern worldwide. Even at very low concentrations, MPs can have adverse effects on aquatic ecosystems and possibly also on human health. Switzerland is one of the first countries to start implementing a national policy to reduce MPs in the effluents of municipal sewage treatment plants (STPs). This paper estimates the benefits of upgrading STPs based on public’s stated preferences. To assess public demand for the reduction of the environmental and health risks of MPs, we conducted a choice experiment in a national online survey. The results indicate that the average willingness to pay per household is CHF 100 (US$73) annually for reducing the potential environmental risk of MPs to a low level. These benefits, aggregated over households in the catchment of the STPs to be upgraded, generate a total annual economic value of CHF 155 million (US$ 113 million). This compares with estimated annual costs for upgrading 123 STPs of CHF 133 million (US$97 million) or CHF 86 (US$ 63) per household connected to these STPs. Hence, a cost-benefit analysis justifies the investment decision from an economic point of view and supports the implementation of the national policy in the ongoing political discussion

Do payments for forest ecosystem services generate double dividends? An integrated impact assessment of Vietnam’s PES program

<div><p>Payments for ecosystem services (PES) often serve multiple objectives, such as carbon emission reduction and poverty alleviation. However, the effectiveness of PES as an instrument to achieve these multiple objectives, in particular in a conservation-development context, is often questioned. This study adds to the very limited empirical evidence base and investigates to what extent Vietnam’s move to PES has helped protect forest ecosystems and improve local livelihoods and income inequality. We zoom in on Lam Dong province, where PES was first introduced in Vietnam in 2009. Changes in forest cover are analysed using satellite images over a period of 15 years (2000–2014). Socio-economic impacts are assessed based on rural household interviews with PES participants and non-participants as a control group over a period of 7 years (2008–2014). Our results show that PES contributes significantly to forest cover, the improvement of local livelihoods, and the reduction of income inequality.</p></div

Comparison of mean VCF tree-cover in the study area between the pre-PES period (blue) and during the PES period (green).

<p>Comparison of mean VCF tree-cover in the study area between the pre-PES period (blue) and during the PES period (green).</p

Results of the treatment effects model.

<p>Results of the treatment effects model.</p

Comparison of changes in gross income of PES participants and non-participants.

<p>Comparison of changes in gross income of PES participants and non-participants.</p

Lowland area, time-integrated NDVI per year.

<p>Shows the sum of the annual NDVI for each growing season from 2000 to 2010 which is a proxy for the total biomass produced in a site. “Lowland controls” shows the average of the control sites.</p

Lowland area, 10-year average seasonal NDVI.

<p>Shows the 10-year average NDVI by the day of the year, with higher NDVI equaling greater grass biomass, and earlier greening and later senesce showing a longer growing season. “Lowland controls” shows the average of the control sites.</p

Cattle holder characteristics inside and outside the MTC.

<p>Cattle holder characteristics inside and outside the MTC.</p

Location of villages included in the rural household survey and ecological sampling sites.

<p>Location of villages included in the rural household survey and ecological sampling sites.</p

Appendix A. Questionnaire for researchers involved in ecosystem services research.

Questionnaire for researchers involved in ecosystem services research