The role of the Water Framework Directive in enhancing water use efficiency in the EU

The increasing economic activity, population growth and urbanisation are placing increasing stress on Europe's freshwater resources. The European Union's Water Framework Directive (WFD) aimed to establish measures to foster efficient use of this valuable natural resource while simultaneously protecting the environment. This study allows for an assessment of the Directive's application of public policies to a natural resource, assuming that the efficiency of water use is measured by water productivity. For the purposes of this investigation, purely economic variables and specific variables pertaining to the implementation of the WFD will be considered. The final econometric model indicates that variables with a positive impact, including research and development (R&D) expenditure and the governance index, necessitate the updating of facilities, the implementation of public control of the resource, and the encouragement of citizen interest in influencing EU policies. Conversely, variables with a negative impact, including population density and water consumption, indicate that as the utilization of a given resource intensifies, the efficacy of that utilization diminishes. The analysis by country indicates that the northern and more industrialised economies have more efficient water use levels. The evolution over time demonstrates that the WFD is being implemented more extensively in regions where it is most needed, resulting in increased productivity values in areas where they are currently lower.