National versus location-specific environmental standards: a cost–benefit analysis of wastewater treatment standards in Israel

Abstract

Generally, governments set national rather than regional environmental regulations and standards, although their efficiency may differ significantly at a local level. This paper presents a case study assessing the introduction of more stringent standards for wastewater treatment in Israel. A cost–benefit analysis is conducted at both a national and a regional level, comparing their economic net benefit. The findings indicate that by setting wastewater treatment standards for each region according to their specific characteristics, the resulting net benefits are greater than by setting uniform national wastewater treatment standards.

Keywords:

• wastewater reuse
• economic feasibility
• local conditions
• environmental standards
• policy-making

Acknowledgment

Special thanks go to Hadas Joseph-Ezra for comments and editing.

Notes

1. The discount rate is based on the average interest rate on government bonds in Israel for the long-term (10 years). http://www.tase.co.il/Eng/Products/Bonds/GovernmentBonds/Pages/BondsGov.aspx.