A Value Transfer Approach for the Economic Estimation of Industrial Pollution: Policy Recommendations

In order to make possible an economic estimation of industrial pollution, which is one of the main polluters in the Asopos River Basin (RB), another method that of Benefit Transfer (BT) was applied and is presented in this chapter. The fact that gathering primary site-specific data is costly and time-consuming has made BT a more and more popular alternative for the valuation of ecosystem goods and services and it offers a considerable potential in the light of the EU Water Framework Directive (WFD) implementation. In a broad sense, BT method uses existing economic value estimates from one location to another similar site in another location. In this context, the objective of this chapter is to present an empirical application of the methodology of transfer value. A number of valuation studies in the European territory that have explored the impact of industry on water degradation are reviewed in order for a suitable ‘match’ to be made between the Asopos RB and a suitable existing valuation study from which to source economic value information and hence perform the valuation exercise. The chapter closes with conclusions and recommendations for policy design.