Monetary assessment of the recreational benefits of improved water quality – description of a new model and a case study

The European Union Water Framework Directive (WFD) has created a demand for comparing the benefits and costs of the remedial measures. A major part of the benefits from improved water quality relate to the increased recreational value. However, there is a lack of easily operative and widely applicable quantitative methods to assess the benefits of improved water quality for recreational use. We present a new model to link physical indicators of water quality, water feasibility indicators for different recreational uses, individuals’ perceptions concerning the current feasibility of water for recreational purposes and monetary measures of water-related recreation benefits. The model has been applied to nine lakes, three rivers and one large coastal area in Finland. In this paper, we present the principles of the method and the results from one case study. In Finland, the method has been applied for the economic analysis required in the WFD.