The European Water Framework Directive and economic valuation of wetlands: the restoration of floodplains along the River Elbe

Abstract This paper concerns the economic valuation of riparian wetlands ecological services within the European Water Framework Directive (WFD). The directive is an integrated approach to river basin management in Europe and aims at achieving a good water status for both surface and ground water. It introduces economic analysis as a core part of the development of integrated river basin management plans. However, to date the WFD has not clearly stated to what extent wetlands should be used for the achievement of environmental objectives, or what scope the economic analysis should have. Our study of the river Elbe shows that riparian wetlands provide significant benefits that should be considered in river basin management decisions. To neglect these benefits would lead to biased cost–benefit analysis results and might therefore misguide the decision‐making process. Copyright © 2007 John Wiley & Sons, Ltd and ERP Environment.