This paper presents the results of an internationally coordinated contingent valuation study on the benefits of reducing marine eutrophication in the Baltic Sea according to current policy targets. With over 10,500 respondents from the nine coastal states around the sea, we examine public willingness to pay (WTP) for reduced eutrophication and its determinants. There are considerable differences in mean WTP between countries, with Swedes being willing to pay the most and Latvians the least. The aggregate annual WTP is approximately €3600 million. In addition, we find that countries are heterogeneous in terms of the effects of income, attitudes and familiarity on WTP. Income elasticities of WTP are below 1 for all countries, ranging between 0.1 and 0.5. Attitudes and personal experience of eutrophication are important determinants of WTP, but the specific effects differ between countries. The findings can be used in economic analyses for the European Union (EU) Marine Strategy Framework Directive and to justify additional eutrophication reduction measures in the Baltic Sea.
1 June 2015 in Journal of Environmental Management
The Baltic Sea provides benefits to all of the nine nations along its coastline, with some 85 million people living within the catchment area. Achieving improvements in water quality requires international cooperation. The likelihood of effective cooperation is known to depend on the distribution across countries of the benefits and costs of actions needed to improve water quality. In this paper, we estimate the benefits associated with recreational use of the Baltic Sea in current environmental conditions using a travel cost approach, based on data from a large, standardized survey of households in each of the 9 Baltic Sea states. Both the probability of engaging in recreation (participation) and the number of visits people make are modeled. A large variation in the number of trips and the extent of participation is found, along with large differences in current annual economic benefits from Baltic Sea recreation. The total annual recreation benefits are close to 15 billion EUR. Under a water quality improvement scenario, the proportional increases in benefits range from 7 to 18% of the current annual benefits across countries. Depending on how the costs of actions are distributed, this could imply difficulties in achieving more international cooperation to achieve such improvements.
1 November 2013 in Journal of Environmental Management
Nutrient load reductions are needed to improve the state of the Baltic Sea, but it is still under debate how they should be implemented. In this paper, we use data from an environmental valuation study conducted in all nine Baltic Sea states to investigate public preferences of relevance to three of the involved decision-dimensions: First, the roles of nitrogen versus phosphorus reductions causing different eutrophication effects; second, the role of time - the lag between actions to reduce nutrient loads and perceived improvements; and third; the spatial dimension and the roles of actions targeting the coastal and open sea environment and different sub-basins. Our findings indicate that respondents view and value the Baltic Sea environment as a whole, and are not focussed only on their local sea area, or a particular aspect of water quality. We argue that public preferences concerning these three perspectives should be one of the factors guiding marine policy. This requires considering the entire range of eutrophication effects, in coastal and open sea areas, and including long-term and short-term measures.