The economic valuation, pricing and promotion of recycled water

Abstract

This thesis topic is the evaluation of recycled water in Crete, Greece. Recycled water is a derivative of fresh water and as such it can be regarded as a good of a similar nature to fresh water (at least for some of its uses such as irrigation). The departure point for this research was given by specific articles and principles of the 60/2000 Water Framework Directive. According to them, recycled water evaluation can be viewed as a corollary of this directive. Since Crete is a European region with intense water shortage problems, this was a good opportunity to apply the suggestions of the directive: solve the problem of water shortage internally (i. e. in Crete, with the island's own means and plans, since Crete can be regarded as a single river basin district), make the most of marginal waters while at the same time enhancing the environment. The evaluation of recycled water has been implemented through the involvement of two distinctive groups of people: farmers and consumers. Therefore, on the one hand, the research asks farmers whether they would be willing to use recycled water of certain qualities for the irrigation of olive trees and tomatoes and on the other hand, the research asks consumers whether they would be willing to use and pay for food products irrigated with recycled water. Results show there is social acquiescence on recycled water usage. This is confirmed by the correspondence of willingness to use recycled water between farmers and consumers. Conclusions from the willingness to use and willingness to pay models provide useful pricing and marketing signals for recycled water. Besides the evaluation of recycled water, another part of the research dealt with the role water plays in the production of olive oil and the confirmation of irrigation water shortages.