The polluter-pays! But, for what?

The guidelines on the economics of the EU Water Framework directive focus mainly on environmental and resource costs. This is in other words the effect side of good water management. They provide little direction on the financial costs of water supply and water use, the efficiency side of the equation. These costs divide into direct operational cost for labour and energy, taxes and capital costs. This article presents for the case of Croatia, the different costs for which eventually the user has to pay and shows the differences in efficiency between the four Croatian riverbasins and compares them with what is found in other countries of the European Union. It concludes that a uniform way of presenting these costs at riverbasin, national and EU level would provide insight in what the user pays for and enhance the role of a river basin authorities by providing a transparent tool to stimulate good governance in water use.