Environmental Economics (EnvEco)
The research group in Environmental Economics (EnvEco) studies interactions between natural environment and economic activities by applying various economic analytical tools (e.g., cost-benefit, cost-effectiveness, input-output analyses). More specifically, this cluster uses economic principles and approaches with the aim of supporting sustainable management of water resources. The main research focus of the group is economic valuation of ecosystem services provided by water resources and assessment of social welfare changes resulting from changes in water quality.
Economic activities at the same time depend upon and affect the natural environment. Many ecosystem goods and services are used either directly for consumption or serve as inputs in the production processes. Consumption and production activities, on the other hand, lead to environmental pollution and degradation. Due to market failure associated with natural resources and the environment, full benefits of ecosystem goods and services and costs of such externalities for the society are not reflected in traditional markets or in product prices. This can have serious implications for decisions related to environmental management.
Economic valuation methods, such as revealed and stated preference techniques, enable assessing such (non-market) costs and benefits. These estimates are then integrated into wider decision-making frameworks, such as cost-benefit or cost-effectiveness analyses, in order to ensure optimal resource allocation as well as to support decision-making processes and policy development.
The work of EnvEco relies strongly on interdisciplinary research. The group collaborates closely with scientists from different disciplines at Eawag, including urban water engineers, ecologists, ecotoxicologists, and other natural scientists.
Current projects
- Cost-benefit analysis of micropollutant reduction
through upgrading of wastewater treatment plants in Switzerland
- Cost-effectiveness and cost-benefit analyses of measures for water quality improvement in Mönchaltorfer Aa (iWaQa project)
- Creating a GIS-based water services value map for
Switzerland