Cost-Effective Marine Protection--A Pragmatic Approach.

This paper puts forward a framework for probabilistic and holistic cost-effectiveness analysis to provide support in selecting the least-cost set of measures to reach a multidimensional environmental objective. Following the principles of ecosystem-based management, the framework includes a flexible methodology for deriving and populating criteria for effectiveness and costs and analyzing complex ecological-economic trade-offs under uncertainty. The framework is applied in the development of the Finnish Programme of Measures (PoM) for reaching the targets of the EU Marine Strategy Framework Directive (MSFD). The numerical results demonstrate that substantial cost savings can be realized from careful consideration of the costs and multiple effects of management measures. If adopted, the proposed PoM would yield improvements in the state of the Baltic Sea, but the overall objective of the MSFD would not be reached by the target year of 2020; for various environmental and administrative reasons, it would take longer for most measures to take full effect.

Prospects for cost-efficient water protection in the Baltic Sea.

This study investigates the economic consequences of the nutrient load reductions agreed in the 2013 revision of the Baltic Sea Action Plan. The cost of meeting the targets set for waterborne sources was estimated to be 1980 MEUR annually. The 2013 revision is a step towards cost-efficient water protection: the cost of meeting the earlier targets would have been 328 MEUR (14%) higher, although the revised targets are now more ambitious with respect to phosphorus. We demonstrate that there is potential for efficiency gains by introducing flexibility mechanisms, such as 'joint implementation' to trans-boundary water protection. The potential gains can be as high as 280 MEUR (14%). The most flexible interpretation of the basin targets, one allowing Contracting Parties to account for reductions in other sea basins in proportion to their effect in the focal basin, could further reduce the total cost by 200 MEUR (12%).