Investment in water infrastructure : findings from an economic analysis of a national programme

Mixed findings emerge from this ex post Cost-Benefit Analysis of a major water investment programme in Ireland. Water supply and conservation investments, where most benefits were internal, generally proved worthwhile. Wastewater investments could not be analysed fully due to lack of environmental data. Here the authors estimated the level of 'willingness-to-pay' that would have been required to 'justify' the investments. In some cases the required level seemed implausibly high, raising questions as to prioritisation of projects. The authors recommend a more systematic approach to recording environmental benefits in future investment programmes, the next likely wave being in new EU member states seeking to meet environmental standards. The EU, as likely co-funder of these investments, should require systematic recording of environmental benefits.