An economic analysis of water use in the Scotland river basin district

An economic analysis of water use in the Scotland river basin district

SUMMARY REPORT

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Executive summary

This report represents a snapshot of our current knowledge of water use in the Scotland river basin district (RBD). Much of the underlying research provides new insights into how water is, and has been, used in the Scottish economy and provides an indication of its importance. This will inform our thinking as we progress in the implementation of the Water Framework Directive (the Directive)1. The Scotland RBD covers a large and diverse area ranging from the remote Shetland Isles in the north to the urban areas of Glasgow and Edinburgh. The changing landscape of Scotland has a strong influence on its economic structure; supporting whisky distilleries and hydro power in the Highlands and Islands, and the electronics industry and a sophisticated service sector economy in the central belt.

Economics forms one of the central pillars of the Water Framework Directive (WFD) and we are able to use economic evidence to rank the efficacy of potential measures necessary for Scotland’s waters. This informs the decision-making process and aids the selection of the most effective combination of measures.

The value of water use in the Scotland river basin district is estimated as ranging from a fraction of a penny per cubic metre to in excess of £1 depending upon the circumstances and the use to which water is put.

The report illustrates the links between the environmental effects and the value gained from different water uses and also examines the economic sectors that are associated with point source discharges, diffuse source discharges, abstraction and impoundment and alteration to physical habitat.

In Scotland, 4,213 pressures on 1,256 water bodies are identified as coming from economic or industrial activities and a brief analysis is provided on the nature of those activities.

Preliminary analysis indicates that Scottish Water, the principal supplier of water services, is recovering the costs associated with supply, although further analysis remains to be undertaken into the extent to which this includes environmental and resource costs.

Analysis of changes in demand for water up to 2015 indicate that, in the absence of controls, demand for water is expected to increase in line with structural changes and growth in the economy although at a slightly lower rate. The greatest change in overall water use may come from an increase in the use of renewable sources of energy, however, agricultural use of water is predicted to decline as a result of anticipated changes to the structure of the common agricultural policy.

Further work is needed to support the important work that will be taking place to protect and improve the water environment in the coming years.

Appended to this report are links to a number of sector/case studies that have been written by members of the Economic Advisory Stakeholder Group (EASG). These are appended as they were submitted to SEPA and, as such, do not necessarily represent the views of SEPA. We are, however, grateful to the EASG whose assistance and advice in the underlying research and the provision of these sector reports has been most beneficial.


1 A copy of the Water Framework Directive is available through the links page at http://www.sepa.org.uk/wfd/links or through the EU at http://europa.eu.int/eur-lex/pri/en/oj/dat/2000/l_327/l_32720001222en00010072.pdf The Water Environment Water Services Act 2003 is the enabling legislation for the Water Framework Directive.

 
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