1 Introduction
1.1 Scope and Content of the Study
1.2 Outline of the Study
2 Environmental Economics and Groundwater
2.1 Externalities and the theory of optimal pollution
2.2 Coasean contract solutions and Pigouvian taxes
2.3 Groundwater as a public good
2.4 Conceptual Difficulties in Dealing with Groundwater
3 Groundwater Pollution
3.1 Sources of pollution
3.1.1 Agriculture
3.1.2 Industry and Mining
3.1.3 Transport
3.2 Pollutants
3.2.1 Nitrate
3.2.2 Ammonium
3.2.3 Phosphorous
3.2.4 Chlorides
3.2.5 Pesticides
3.2.6 Hydrocarbons
3.2.7 Heavy metals
3.3 Local Groundwater Conditions and Pollution Hotspots
3.3.1 Wetlands
3.3.2 Shallow Aquifers
3.3.3 Coastal areas
3.3.4 Recharge and Catchment Areas
4 Instruments for Groundwater Protection and Remediation
4.1 Instruments for Groundwater Protection
4.1.1 Taxes and Subsidies
4.1.2 Tradable permits
4.1.3 Cooperative Agreements
4.1.4 Standards and Regulations
4.1.5 Informational Measures
4.2 Instruments for the Remediation of Groundwater Pollution
4.2.1 Restoration
4.2.2 Containment
4.2.3 Removal at Discharge Points
4.3 Conclusions on the Instruments for Protection and Remediation
4.3.1 Distribution of Costs
4.3.2 Choice of the Instrument Mix
5 The Cost of Protection and Remediation
5.1 Cost of Protection from Diffuse Sources
5.1.1 Costs of Reducing Nitrogen Applications
5.1.2 Costs of Reducing Pesticide Applications
5.1.3 Costs of the Protection of Catchment Areas
5.2 Cost of Protection from Point Sources
6 The Benefits of Groundwater Protection
6.1 The Value of Groundwater
6.1.1 Valuing Groundwater: Theory, Relevance and Limitations
6.1.2 Use Values of Groundwater
6.1.3 Non-Use Values of Groundwater
6.1.4 The Indirect Value of Groundwater: Ecosystem Benefits
6.1.5 Different Categorisations of Groundwater Values
6.1.6 The Temporal Dimension of Groundwater Valuation
6.2 Benefits Estimated as Avoided Damage Costs
6.2.1 Averting Behaviour Approach
6.2.2 Avoided Treatment Costs
6.2.3 Cost of Illness Approach
6.2.4 Conclusions on Avoided Damage Cost Approaches
6.3 Benefits Estimated as Willingness to Pay
6.3.1 Case Studies from the US
6.3.2 European Case Studies
6.3.3 Conclusions on Analyses of Willingness to Pay
6.4 Ecosystem Benefits
6.5 Conclusions on Groundwater Valuation
7 Combining Costs and Benefits
7.1 Methods for Combining Costs and Benefits
7.2 Examples of Combining Costs and Benefits of Particular Instruments
7.3 Examples of Risk-Based Management of Groundwater Resources
7.4 Economics and Target Values for Groundwater Protection
7.4.1 Limitations for the Use of Economics in Setting Target Values
7.4.2 Comments on Target Values
8 Conclusions
9 References