Transcript

Science of the Total Environment 324(2004) 1–24

0048-9697/04/$ - see front matter� 2003 Elsevier B.V. All rights reserved.doi:10.1016/j.scitotenv.2003.10.019

Investing in sustainable catchments

Mark Everard*

Visiting Research Fellow, Faculty of Applied Sciences, University of the West of England, Frenchay Campus, Coldharbour Lane,Bristol BS16 1QY, UK

Abstract

Catchments constitute logical units for management of the water cycle. Patterns of development uninformed bysustainability concerns have degraded catchment integrity and associated ecosystem functions, imposing largelyunquantified costs. Ecosystem functions are central to sustainable social and economic progress; their protection orrestoration may be the only sustainable form of investment in catchments. Despite growing use of catchment functionsin some policy areas, a shortfall in awareness and pragmatic tools limits progress with policies and practical tools tosupport sustainable development in catchments, perpetuating damaging practices. This paper reviews methods ofeconomic valuation of riverine systems. Valuation of ecosystem functions is revealed as particularly pertinent tosustainable development, as an indicator of the benefits of ecological processes to social and economic progress. Arange of practical projects, targeted at restoration of riverine habitat in the UK with the intent of improving both riverecology and the social and economic advantages that flow from it, is also reviewed. Emerging principles and themesare discussed in terms of their potential contribution to policies and practices that promote sustainability. Review ofthese projects highlights the importance of planning at adequately broad scales—spatial, temporal and disciplinary—to identify integrated solutions, and to maximise community ‘buy-in’ and total benefits. In several cases, economicanalyses demonstrate strongly positive benefit–cost ratios stemming from habitat improvement. However, majorreform of regulatory and economic instruments is needed to promote sustainable catchment development, sinceprevalent ‘perverse’ incentives continue to degrade ecosystem functions. Measures to recognise and reward ecosystemservice as legitimate outputs from agricultural land use constitute a particular priority. There is a need simultaneouslyto address both ‘big picture’ structural adjustments and locally-appropriate solutions, from which clear local benefitsflow. Pragmatic measures that contribute to systemic outcomes must also be attractive to local decision-makers andland managers, and yield benefits that ensure they are sustained once intervention ceases. Cost need not be a barrier,as current environmentally-damaging subsidies may instead be redirected towards sensitive land use andyor measuresto protect biodiversity and ecosystem functioning, particularly where targeted upon habitat of disproportionateimportance to functioning of catchments as whole systems. Internalisation of the costs of damage to ecosystemfunctioning will promote valuation of the natural capital of catchments as a primary resource for social and economicprogress.� 2003 Elsevier B.V. All rights reserved.

Keywords: Catchments; Ecosystem functions; Sustainable development; Land use; Partnership; Benefit–cost assessment

*Tel.: q44-1249-721208.E-mail address: [email protected](M. Everard).

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1. Introduction

Sustainable development integrates social andeconomic progress with the ecological processesupon which human health, economic activities and‘quality of life’ depend (World Commission onEnvironment and Development, 1987). The watercycle provides ecosystem functions—hydrological,ecological and physico-chemical—of centralimportance to sustainability, including provision ofeconomic, recreational, aesthetic, educational andspiritual opportunity. Catchment systems constitutelogical management units, throughout which alldecisions and actions have interdependent ecolog-ical, social and economic implications(Golley,1993; Newson, 1994; Zalewski et al., 1997; Ever-ard, 1997a; Calder, 1999; Powell, 2000). Catch-ment integrity maximises ecosystem functioning,‘carrying capacity’ and resilience(Everard andPowell, 2002).

Biodiversity is perhaps the most important indi-cator of overall ecosystem health and possibly offunction. The literature on the linkage betweenbiological diversity and ecosystem functioning isequivocal. On the basis of an extensive review ofobservational, theoretical and experimental studies,Schwartz et al.(2000) concluded that there wasonly a weak relationship between species diversityand ecosystem stability, and suggested that thiswas due to dominance patterns in natural andexperimental communities with the contribution ofrare species being practically non-existent. How-ever, this conclusion is based on studies addressingsingle or few functions, and on experimental con-ditions that did not necessarily reflect the variabil-ity of environmental conditions to whichecosystems have to adapt. In another review, Til-man (1997) argues that greater species diversitymaximises the potential for resource exploitationwhich, whilst potentially not maximising thepotential of individual ecosystem functions(suchas productivity in the case of agricultural and othermonocultures), maximises the breadth of functionsperformed by ecosystems, their inherent stabilityand resilience to disturbance, and sustainability.The beneficial functional processes of diverse bio-logical systems, argues Tilman, do not arisethrough direct and simple relationships but are

manifestations of the complex interactions withinadaptable and complex systems. What is quiteclear is that there is a positive relationship betweenbiodiversity and ecological functions that is ofindeterminate, or at least undetermined, strength.Cook and Shelton(2000) advance the idea ofbiodiversity and ecosystem function protection asa form of ‘ecological insurance’.

Industrialised society is founded upon historicassumptions that generally externalise the benefitsgained from catchment functions. Unsustainabledecisions relating to river systems commonly arisefrom a perspective shaped purely by human utility(Gardiner and Perala-Gardiner, 2000; Boon et al.,2000), including resource, land use and planningdecisions that ignore the implications for water inthe landscape(Newson, 1994; Costanza et al.,1997; Everard, 1997a,b; Calder, 1999; Mance etal., 2002; Everard and Powell, 2002). Poor man-agement decisions that degrade catchment func-tions can give rise to substantial social harm,economic costs and unsustainability(Dugan, 1990;Doppett et al., 1993; Boon et al., 2000; Brown,2001). In particular, decisions taken to manageproblems on a parochial, short-term or ‘singleissue’ basis may overlook catchment-scale pro-cesses, generating adverse effects across the sys-tem as a whole. Historic, locally-focusedapproaches to flood defence provide pertinentexamples of all three issues of scale(space, timeand discipline), often diminishing flood storagecapacity, exacerbating flood risk downstream,adversely affecting longer-term geomorphologicalprocesses, and with ramifications for water quality,fisheries, recreation, or ecological health.

Restoration of ecosystem functions to rebuild‘carrying capacity’ may be the only sustainableform of investment in catchments(Everard, 1997a;Daily et al., 2000; Everard and Powell, 2002). Thetheoretical arguments are persuasive, but practicaldemonstration is necessary to help policy-makersand managers make informed, long-term decisions.A growing number of studies on aspects of riverbasin conservation or restoration, many not subjectto peer review or published for a wide readership,demonstrate principles and conclusions of value todecision-makers. This paper discusses methods andattitudes to valuation of rivers and other environ-

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Fig. 1. Indicative location map of UK schemes, rivers and sitesnoted in this paper, numbered in order referenced.(1) TheHumber Estuary,(2) the River Wensum,(3) the River Tamar,(4) the Rivers Taw-Torridge,(5) Cornwall (ten rivers consti-tute the Cornwall Rivers Project), (6) the River Dart,(7) theRiver Tale, (8) the River Eden,(9) the River Tweed,(10)Darlington (River Skerne site), (11) Coleshill (River Colesite), (12) High Hullockhowe Farm,(13) River Cole (Bir-mingham), (14) Tyneside,(15)Wearside,(16) Stoke-on-Trent,(17) the River Medway,(18) Pembrokeshire,(19) the RiversLune and Wyre,(20) the River Ribble,(21) the HampshireAvon (Wessex Salmon and Rivers Trust), (22) Leeds(the Riv-er Aire), (23) the Mersey Basin,(24) Malmesbury(the rivervalley of the Bristol Avon) and(25) the River Foss.

mental resources, and introduces a selection ofpractical case studies from the UK. The principalpurposes and conclusions of some additional river-based initiatives are also outlined where theyprovide insights into the costs and benefits of riverfunctions, together with the findings of some peer-reviewed studies set in a broader sustainabilitycontext. The emerging principles and themes arediscussed in terms of their contribution to policiesand practices that promote sustainability.

2. Assessment of costs and benefits in rivercatchments

2.1. Valuation of rivers

Traditional economic appraisal methods appliedto rivers by statutory bodies to justify and prioritisecapital expenditure programmes(for example USEnvironmental Protection Agency, 1983; HerMajesty’s Treasury, 1991; Department of the Envi-ronment, 1991; Foundation for Water Research,1996) have tended to focus predominantly uponlocal human uses(drinking and irrigation waterquality, angling, informal recreation, etc.). Theseutilitarian evaluations largely exclude or margin-alise ‘intangible’ values yet, notwithstanding thisnarrow spatial and disciplinary focus, benefits cansubstantially outweigh the costs of water qualityremediation(Newsome and Stephen, 1999).

Wider disciplinary perspectives may add consid-erably to total benefits, and potentially to benefit–cost ratios. A risk-based approach in an urbanMilwaukee watershed resolved potential conflictsof objectives among urban flood control, ecologi-cal protection and water quality, also revealingoverwhelming public support for a more ecologi-cally-centred set of urban values than traditionallyemployed in benefit–cost models(Novotny et al.,2000). This enables more connected thinking,allowing investment to be directed to address awider suite of benefits beyond solutions to per-ceived local, single-discipline problems.

Wider spatial perspectives can increase benefit–cost ratios still further. Everard(2002a) calls fora revised approach to UK water industry invest-ment, consistent with growing understanding ofhow river catchments function as interconnected

systems. Citing historic investment in the HumberEstuary (North-Eastern England) and the RiverWensum(Norfolk, England) (see Fig. 1 for loca-tion), Everard (2002a) makes the case for acatchment-scale perspective, spreading investmentto diffuse and smaller point sources throughoutvulnerable upper reaches to deliver greater envi-ronmental, geographical, social and economic ben-efits than the historic focus on regulation of majorsewage treatment works, which often occur lowerin catchments. There has been a progressive, if notrapid, penetration of catchment-scale thinking

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about investment since the Council of Europedeclared River Basin Management as a guidingprinciple of the European Water Charter in 1968(Krysanova and Kaganovich, 1994). A catchment-scale approach can also promote holistic thinking,for example since habitat protection and enhance-ment can be a powerful mechanism to addressdiffuse pollution. An ecosystem-focussed approachalso adds a temporal dimension, reflecting theinherent sustainability of restoring ecosystem func-tion as a method for delivering water quality andother wider benefits(Zalewski et al., 1997; Ever-ard and Powell, 2002).

2.2. The value of the environment to regionaleconomies

Awareness of the wider socio-economic benefitsof the environment has grown significantly inrecent years. Studies by the National Trust(2001a)and the Countryside Agency(2003) explore radi-cal changes to the rural economy of the UK overthe past two decades, highlighting that economicgrowth is dependent upon the quality of the naturaland built environments through ‘«dynamic activ-ities such as tourism and ‘green’ industries as wellas through those which traditionally relate toenvironmental conservation’ (National Trust,2001b). Outcomes of a series of UK studiesevaluating the benefits of the environment toregional economies are summarised in Table 1.

The UK government’s ‘Rogers Report’,Towardsan Urban Renaissance (Department of the Envi-ronment, Transport and the Regions, 1999a),recognises a sustainable environment as a keyfactor in its vision for urban regeneration. Riverscan act as a focal point for urban regeneration,with urban planning on occasions reviving water-fronts as desirable places to live and work in theUK (Petts et al., 2002). This reverses a long-termtrend as, ‘Once perceived as symbols of decay andpollution and a danger to public health, urbanrivers should now be seen as one catalyst forurban regeneration’ with attractive waterfronts and‘blue networks’ constituting key elements of urbandesign, and clean rivers and wildlife becomingsymbols of a healthy environment, an attractivecity and a stakeholder society(Petts et al., 2002).

The Scottish Environment Protection Agency(SEPA) also acknowledges the central importanceof urban watercourses(Scottish Environment Pro-tection Agency, 2000), and that ‘Natural processeslie at the centre of our attempts to manage water-courses’. In 1998, SEPA launched its ‘HabitatEnhancement Initiative’ (HEI), a partnershipapproach to bring about environmental gain thatbroke with the traditional focus on direct regulationalone. Historically, most urban watercourses havenot been valued, often used as sewers, buried tomake way for development and, consequently,perceived as hazards, not assets. The HEI acknowl-edges that watercourses can enhance developmentvalue and, through long-term planning, restorationis perceived as possible with costs recouped byincreased property values.

These assessments of the significant contributionof the environment to ‘quality of life’, albeit oftenpoorly quantified, are supported by a survey ofpublic attitudes in the UK(National Statistics andDepartment for Environment Food and RuralAffairs, 2002), and form a key justification for theintent of UK Government and its advisors tomaintain and develop inland waterways(InlandWaterways Amenity Advisory Council, 1996,1998; Department of the Environment, Transportand the Regions, 2000). Rivers and other water-ways can also form wildlife corridors of conser-vation importance, contributing to the UKGovernment’s environmentally-basedQuality ofLife Counts indicators of sustainability(Depart-ment of the Environment, Transport and theRegions, 1999b). However, despite generally sup-portive attitudes towards the environment, andindeed towards the health of rivers, public attitudestoward functionally important elements of thewater cycle may be less strong. For example,farmers demonstrate a low enthusiasm for wetlandrestoration, perhaps due to their historic involve-ment in land drainage(Rispoli and Hambler,1999).

2.3. Accounting for ecosystem services

Wider-scale perspectives—spatial, temporal anddisciplinary—are required to take account of thefull and potential benefits of catchment ecosystems

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Table 1Key outcomes of studies evaluating the benefits of the environment to regional economies

Region Study Key outcomes

North-East region of England National Trust(2001b) ‘One in 18 jobs in the North-East is environment-linked’,representing 5% of regional GDP and 6% of total currentemployment in the region(exceeding the proportions for carmanufacturing, chemicals and constructions).

Wales National Trust(2001c) £6 billion of Welsh GDP is directly dependent on theenvironment, accounting for one in six jobs, 17% ofemployment, 9% of GDP and 10% of wages earnedin Wales.

River Wye valley in Powys, Wales Reported in Marsh-Smith and Everard(2002) One of the effects of Foot and Mouth Disease in the regionwas to depress tourism by a further 30%, following a decade-long decline in excess of 40% of angling visitors(calculatedfrom sales of Environment Agency Rod Licenses).

Cumbria National Trust(2001d) The economic impacts of the National Trust in Cumbriaas a local employer, farm landlord and owner of landscapeand attractions represents some 9–15% of total jobs inCumbria’s visitor economy.

Cumbria Reported in Eden Rivers Trust(2003) Cumbria Tourist Board statistics show that tourism accountsfor approximately 18% of Cumbria’s economic output(GDP)and 24% of employment.

River Eden Catchment Eden Rivers Trust(2003) The estimated revenue from tourism in 2001 was £111.9million (and a further £91.8 million in neighbouring Carlisle).Angling is estimated to contribute £1.2 million per year tothe local economy and to support 42 full-time jobs.

North West region of England Environment Agency and RSPB(2002) At least 101 200 jobs are sustained by industries that protect,manage or promote enjoyment of a high quality environment,representing 5.6% of all employment(five times more thanthe energy and water supply sectors combined and slightlymore than in the construction industry). At least 48 000of the region’s jobs are directly dependent upon environ-mentally-driven tourism, contributing some £570 million toregional GDP.

Cornwall Westcountry Rivers Trust(2002b) One in three jobs in regions of Cornwall with importantrecreational fisheries depend upon the quality of theenvironment, largely through tourism and leisure, fisheriesand agriculture.

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to society(Everard and Powell, 2002). However,the predominant current emphasis that puts humanutility and immediate economic return at the centreof decision-making overlooks the importance ofecosystem integrity and functioning as a core andirreplaceable resource(Gardiner and Perala-Gar-diner, 2000), not merely for life support and‘quality of life’, but also for economic develop-ment. Society is fully dependent upon the goodsand services provided by the ‘capital asset’ ofecosystems(Westman, 1977; Odum, 1989; Jacobs,1991; Berkes and Folke, 1994; Folke et al., 1994;Costanza et al., 1997; Daily, 1997), of whichaquatic and wetland resources make a significantcontribution(Dugan, 1990; Costanza et al., 1997;Jones and Pittock, 1997). Natural capital has finite‘carrying capacity’, which is dependent upon theresilience of ecosystems(Folke et al., 1994).However, ecosystems, and the means by whichthey ‘produce’ beneficial functions, are poorlyunderstood, and the importance of the servicesthey provide becomes evident only as they are lost(Daily et al., 2000). Determination of exact mon-etary value for the benefits of an environmentalgood may be impossible if we have incompleteknowledge of its function in the ecosystem(Jacobs, 1991). Consequently, benefit–cost assess-ment and other valuation techniques used in devel-opment decisions inadequately reflect the trueenvironmental and socio-economic value of naturalecosystems and the goods and services they pro-vide (de Groot, 1994). In the face of incompleteunderstanding yet progressive deterioration of sup-portive ecosystems, Turner et al.(1994) argue thatsome valuation ‘«is better than none, becausenone can mean some implicit valuation shroudedfrom public scrutiny’. Failure to value ecosystemseffectively prices ecosystem functions as zero,inducing inefficient prices throughout the economy(Costanza et al., 1997).

Lack of understanding of the true long-termutility of species and ecosystems results in a failureto adequately value the wider services providedby complex ecosystems, externalising them frommainstream economic considerations(Hawken,1993; d’Arge, 1994; Ormerod, 1994; Hawken etal., 1999). Neo-classical economists argue thatenvironmental problems arise from market failure

(Bowers, 1997), yet environmental economistsargue that perfect competition is ‘«a convenientfiction for constructing economic models, but it isremote from the real world’ (Pearce and Turner,1990). The established worldview of ecosystemand human needs as being competitive creates anapparent conflict between conservation of biodiv-ersity ‘for its own sake’ and a focus on safeguard-ing ecosystem services for humanity’s sake(Balvanera et al., 2001). A functional viewresolves this apparent conflict by emphasising theimportance of biodiversity for the functional integ-rity of integrated socio-ecological systems, inwhich appropriate species and habitats serve asprimary indicators of the supportive capacities ofthe ‘natural capital’ of catchment systems(Tilman,1997; Everard and Powell, 2002). The realitytoday is that many of the primary resources of theeconomy and social wellbeing are not valued,constituting commons: ‘public goods’, owned byno-one and perceived as free for use by anyone.The integrity and vitality of river catchments, andtheir many beneficial functions, are an example ofsuch a ‘common’ for which degradation is assuredsince ‘rational’ economic agents have no incentiveto pay the costs of protection or improvement.Marine fisheries demonstrate how such sharedresources may be the subject of some agreementsrelating to ‘carrying capacity’, such as catch quo-tas, yet still the legacy is overwhelmingly of over-investment in exploitative(in this case fisheries)technologies and progressive under-investment in,and diminution of, natural capital(Clark andMunro, 1994; Kurlansky, 1997). Daly (1994) callsfor a shift from investment in man-made to naturalcapital, since it is ‘« the stock that yields the flowof natural resources’. Salzman(1997) argues that‘Perhaps the most fundamental policy challengefacing ecosystem protection is that of valuation’,and that the prime obstacles to translation of theoryinto sustainable practice lie in shortfalls in thenecessary environmental law and economic tools.James et al.(1999) argue that the benefits ofconservative management of ecosystems often out-weigh the costs when the true value of naturalcapital (including ecosystem services) is properlycalculated.

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An emphasis on ecosystem functions may, there-fore, take better account of supportive processesthan a ‘static’ evaluation of ecological stocks forwhich the socio-economic benefits are indetermi-nate. Understanding of the ‘production methods’of ecosystem functions is far short of perfect(Daily et al., 2000). For example, despite animpoverished scientific literature, catchment per-meability is of high apparent importance to theways land now sheds rainwater, with short-termagricultural subsidies accelerating soil compactionand erosion, decreasing biodiversity, exacerbatinganimal welfare problems, diminishing soil structureand the infiltration of rainfall to groundwater, andcontribution to the substantial ‘downstream’ costsof flooding and flood defence.(This under-researched issue is the subject of a research studycurrent at the time of writing, let jointly by theDepartment for Environment Food and RuralAffairs and the Environment Agency under the‘Broad Scale Modelling’ theme. The relevant pro-ject is numbered and titled ‘FD2114: Review ofimpacts of rural land use and management onflood generation: short term improvement in mod-elling and research’.) However, uncertainties areamenable to catchment modelling and thereforefactoring into decision-making(Khatibi, 2003),and our understanding of the benefits arising fromecosystem functions now covers a variety of dis-ciplines to which economic methods may beapplied. Numerous studies have addressed thefunctional values of wetlands across the world andtheir value as a primary resource for sustainabledevelopment(for example Dugan, 1990; Everardet al., 1995; Costanza et al., 1997). Daily et al.(2000) report a State Forests of New South Wales(Australia) worked vision of farming in whichecosystem goods and services are also marketedfrom timber-producing land, with timber and otheragricultural commodities accounting for only 55%of revenues and the remainder accounted for bybeneficial ecosystem functions.

The protection or restoration of ecosystem serv-ices for one or more aspects of flood control, waterquality, erosion control and soil fertility, climaticstability, human enjoyment and waste processingare already established practices throughout theworld (Daily et al., 2000). Perhaps one of the

most spectacular examples is the decision by thecity of New York not to invest $4 billion plusoperating expenses in water purification plant tosecure water resources, but instead to invest inacquisition and restoration of the natural capital ofthe Catskills watershed(New York City’s primaryresource for drinking water), funded through pub-lic subscription to an ‘environmental bond issue’.This not only secured water resources, but had apayback period of only 5–7 years, and coinciden-tally increased flood protection at no extra charge(cited in Salzman, 1997). Flood risk managementis one example where the importance of function-ing catchments is becoming increasingly recogni-sed in the UK. TheLearning to Live with Riversreport(Institution of Civil Engineers, 2001), com-missioned by government largely in recognition ofpolicy failure and substantial economic damagefollowing winter 2000y1 flooding, marked a met-aphorical ‘watershed’ in UK public policy. It high-lighted the importance of protection and restorationof the natural hydrological processes of catch-ments, encouraging more sensitive urban devel-opment in areas at risk from flooding, andsupporting improved catchment-scale flood man-agement planning and more effective use of mod-elling. Evans et al. (2002) report on theimplementation of catchment flood managementplans(CFMPs), providing the basis for long-term(50 year horizon) sustainable flood risk manage-ment that integrates technical, environmental andeconomic factors. The CFMP for the ‘pilot’ Parrettcatchment (South-Western England) identifiespresent and future flood risk, uncertainties such asclimate change, and options to protect the environ-ment and property at catchment scale(Environ-ment Agency and Lewin, Fryer and Partners,2002). In addition to traditional engineering solu-tions, the Parrett CFMP identifies ‘softer’ optionsincluding flood storage in upper catchments, moreflood-sensitive agricultural land management, sus-tainable drainage systems in new urban develop-ments, use of a local canal for flood storage, anddiversion of flows to adjacent watercourses.CFMPs proceed by consultation with a wide rangeof stakeholders, recognising the need for longer-term, broad-scale thinking to deliver more sustain-able flood management integrated with local and

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regional development plans. Turning this visionand pilot scheme into reality remains the challenge,and by substantial majority existing economicmechanisms are poorly-adapted to ensure sustain-able flood risk management of the catchment, orindeed most other sustainable attributes of catch-ment management. Whilst some good examples ofthe principles of functional assessment have beenestablished, widespread policy implementationremains nascent.

Catchments should provide ideal managementunits within which sustainable policies are to beimplemented. They comprise semi-closed ecolog-ical and economic systems, providing both con-venient frameworks to investigate and model theeffects of human activities on ecosystems as wellas representing logical management units(Krysa-nova and Kaganovich, 1994; Everard and Powell,2002). The productive capacity of renewableresources, critically including water and nutrientcycles as well as the state of the ecosystem, aretherefore of primary importance(Krysanova andKaganovich, 1994). This leads other authors torecognise the strategic importance of investmentin ecosystem services within catchments as the‘emergent properties’ of complex catchment sys-tems(Everard and Powell, 2002), wherein sustain-able development implies that ‘«the opportunitiesassociated with the stock of natural capital shouldbe widening over time’ (Ehrlich, 1994; Perrings,1994). Indicators of global trends in natural capitaland catchment integrity suggest rapid degradationand narrowing of opportunities(Boon et al., 2000;Brown, 2001). Valuation and, perhaps more impor-tantly, mechanisms to ensure that the ‘ProviderGets’ as well as the ‘Polluter Pays’ principles areapplied to beneficiaries and users of ecosystemservices, confound the more widespread implemen-tation of sustainable catchment stewardship(Pretty,2002). The Ramsar Convention(2002) believesthat wetlands should be the starting point forintegrated water management strategies since theyare the source of fresh water, maintaining thehealth of watercourses and water bodies, subse-quent supply to meet human needs, and the key tofuture water security. Yet, recognition of the poten-tial benefits of ecosystem services to address‘downstream’ water quality, quantity and ecologi-

cal problems, therefore, remains rare. Consequent-ly, although ubiquitously acknowledged asbeneficial, catchment ecosystem functions remainpoorly quantified and almost completely excludedfrom land use policies.

Set against this contrary picture of emergingunderstanding yet frustration in terms of sustaina-ble policy-making, a range of innovations in catch-ment and river-related management are takingplace at ‘grassroots’ level in the UK. In the nextsection of this paper, we will explore the attributesof some of these initiatives to determine lessonsto be learned for policy development.

3. Initiatives and studies on UK rivers

This section reviews a range of initiatives onUK rivers, some of which have been subject toeconomic assessment. Principal purposes and con-clusions of additional river-based initiatives arealso outlined where they provide insights into thevaluation of river functions. The locations of theseinitiatives are indicated in Fig. 1 and, whereavailable, their intent, costs and benefits are sum-marised in Table 2.

3.1. The River Wye catchment

The work of the Wye and Usk Foundation(WUF, formerly the Wye Foundation, a charityestablished in 1996) is based on the premise thatrestoration of the ecosystem of the River Wye isthe key to sustainable economic and social pro-gress of the rural catchment in mid-Wales. TheWUF has engaged in a programme of habitatrestoration, sensitive use of riparian land andamelioration of acidification impacts, which hasbeen demonstrated to contribute substantially inexcess of the economic costs of management tothe value of the fisheries, landscape and tourist-related economy(early work summarised byMarsh-Smith and Everard, 2002). Much of thelatter phase of this work is supported by EU socialregeneration funding.

In 2003, the WUF introduced a ‘Passport’scheme to promote recreational angling in uppercatchments(Wye and Usk Foundation, 2003). Thisis intended to create a circular economic flow from

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Table 2Summary of intent, costs and benefits of major initiatives discussed in this paper

River Background Funding Indicative benefits, and notes on ratio to costs

River Wye Addressing decline in salmonid Individual project funding up Benefits include improved river ecology, includingfisheries, but broadening to address to £1.4 million from EU and fishery potential. Stimulation of angling businesses andwider ecosystem and regional UK government, membership and associated tourism account for 15 and 85% respectivelyeconomy.(Foundation’s objectives private donation of the projected benefits to the local economy, includingfocus largely upon restoration of creation of in excess of 85 full time equivalent jobs.salmon) A thriving River Wye will also generate substantial

inward and internal investment, estimated to exceed£200 000 although potentially as high as £500 000depending upon success of restoration of the salmonpopulation. Further benefits include promotion ofrediscovered skills, economic by-products such ascharcoal production and additional revenue fromfirewood. Benefit–cost ratios strongly positive.

River Tamar Fisheries(with a focus on salmonids), Individual project funding up to Total benefits projected from application of farmtourism, local business and wider £1.6 million from EU and UK plan recommendations were a little over £4.9 millionecosystem government, membership and ( just under £3.4 million with 6% discount) over 10 years.

private donation Relative to total farm plan costs of £600 700(£550 678 with discounting), the total benefitycost ratiois a highly favourable 8.2(6.4 with discounting).

Rivers Taw and Torridge Fisheries(with a focus on EU and UK government, Results suggest that average net direct benefit tosalmonids), tourism, local business membership and private donation individual farm-businesses was approximately £2700and wider ecosystem (nearly £2000 with discounting at 6%) per business per year,

(nearly with 80% of the benefits accruing to agriculturalactivities and much of the remainder tourism-related. Thisis a substantial figure in the light of depressed farm incomes.The study estimates a highly cost-efficient catchment-wide total(direct and indirect) benefit:cost ratio of 8.6over the 10-year planning horizon(6.4 with discountingat 6%). This equates to)£9 million (undiscounted)quantified benefits across the catchment; if indirectbenefits could also be quantified, the expectedbenefit–cost ratio would demonstrateeven greater social efficiency.

Cornwall Rivers Fisheries(with a focus on salmonids), Individual project funding up to This support confirms EU and UK governmenttourism, local business and £1.8 million from EU and UK recognition of the contribution of ecosystem functioningwider ecosystem government, membership and to alleviating rural poverty, supporting agricultural

private donation adjustment and changes within communities,enhancing regional distinctiveness.

River Dart Fisheries(with a focus on salmonids), EU and UK government, membership, None yet published, but government support

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Table 2(Continued)

River Background Funding Indicative benefits, and notes on ratio to costs

tourism, local business and wider private donation, support indicates recognition of the contribution ofecosystem from the Atlantic Salmon Trust ecosystem functioning to rural sustainability.

River Tale Fisheries(with a focus on salmonids), EU and UK government, Landfill None yet published, but government support indicatestourism, local business and wider Tax credits, membership and recognition of the contribution of ecosystemecosystem private donation functioning to rural sustainability.

Axe Valley catchment Fisheries(with a focus on salmonids), EU, Environment Agency, English Nature, There is as yet no published literature on this.tourism, local business and wider East Devon District Council and Dorset However, highly favourable benefit–cost ratios can beecosystem County Council, the Devon Farming and predicted on the basis of other WRT projects with a

Wildlife Advisory Group(FWAG), the similar approach and set of underpinning principles.National Farmers’ Union andprivate donations

River Eden Fisheries(with a focus on salmonids), Legal settlement, EU and UK Costs of approximately £3.3 million over four activitiestourism, local business and wider governments, private sources (restoring habitat, restoring and protecting wetlands,ecosystem education to foster stewardship and a visitor centre)

have been identified to make substantive improvementsto the Eden catchment, with benefits estimated assignificantly greater. A Restoring Eden Socio EconomicImpact Assessment study was undertaken to assess thevalue of the river Eden to the local community and thesocio-economic impacts of its restoration. Projectedbenefits for quantifiable elements total £1 755 000 andcreate 92 new jobs(in agriculture, tourism, angling andunrealisable benefits) with wider unquantifiable benefitsto the environment and to the protection of waterresources. Whilst the overall benefit:cost ratio is 1:0.6,the unquantified benefits(significantly includingprotection and improvement of water resources) areestimated to be substantial and to contribute to thelong-term sustainability of the region.

River Tweed Primarily salmonid fisheries, with wider Private donations, public grants, No published account of costs and benefits is available.benefits for businesses in the membership and shared partnership funding.catchment This includes a £0.25 million share for

riparian habitat enhancement as partof a wider partnership-based £4 millionTweed Rivers Heritage Project, aimed atprotecting and enhancing the natural,built and cultural heritage of Tweed.

River Skerne Urban regeneration, amenity and £1.6 million between the Cole and Annual benefits for the Skerne restoration(1997 values)recreation(including fishery) and Skerne schemes, with £350 000 spent ranged from £29 688–181 439(excluding amenity). Thisconservation ‘on the ground’ and an additional equates to £536 988–3 704 357 discounted at 6%

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ent324

(2004)1–24

Table 2(Continued)

River Background Funding Indicative benefits, and notes on ratio to costs

in-kind contribution from the water over 25 years and £782 873–5 629 752 discounted atutility of £100 000 on the Darlington 6% over 50 years. In broad terms, benefits on the Skernesite. EU LIFE funding with site were estimated to account for around the anticipatedmatching from UK government, £3.2 million benefit figure predicted for half of thesome private contributions cumulative benefits of the River Skerne and

Cole projects.

River Cole(Wiltshire) Amenity (including the fishery), £1.6 million between the Cole and Annual benefits for the Cole restoration(1997 values)conservation, regional character Skerne schemes, with £180 000 spent ranged from £38 732–347 329.(This equates to

‘on the ground’ on the Coleshill £495 126–4 440 046 discounted at 6% over 25 yearssite. EU LIFE funding with and £610 490–5 474 562 discounted at 6% over 50matching from UK government, years.) In broad terms, benefits on the Cole site werewith some agricultural subsidy estimated to account for around the anticipated £3.2

million benefit figure predicted for half of thecumulative benefits of the River Skerne and Cole projects.

High Hullockhowe Farm Protection of water resources, Utilityylandowner funding, Definitive economic figures are elusive owing to theaddressing the decline in certain agricultural subsidy, conservation intangible nature of many of the cost and benefits.species of farmland birds, and seeking grants, volunteer labour However, the changed farming practice enabled reopeningto influence policy-makers responsible of the abstraction point, yielding an economic value infor reforming agricultural subsidies excess of six times the rental value of the farm. This was

achieved in return for relatively modest costs formodification of the farm plan. Bird count data on thefarm also demonstrated improved conservation value.Catchment-scale benefits stemming from improvedheadwater management were not quantified, but werepotentially significant and contribute to thelong-term sustainability of the region.

12 M. Everard / Science of the Total Environment 324 (2004) 1–24

beneficiaries of habitat maintenance and enhance-ment to those that provide it, ensuring that meas-ures to improve the river ecosystem aresustainable. Anglers pay for access to fishing,farmers receive revenues for their fisheries(oftenwhere fishing had not taken place previously), andhotels and tackle shops supply advertising andbenefit from trade. Recognising the wider biogeo-graphical dependencies of anadromus fishes, in2003 the WUF lodged with the EU a formalcomplaint against the Irish government over per-mitting overexploitation of salmon through highseas netting(WUF, personal communication).

3.2. The River Tamar catchment

The Westcountry Rivers Trust(WRT) is anenvironmental charity established in 1995 to securethe preservation, protection, development andimprovement of the rivers, streams, watercoursesand water impoundments in the Westcountry andto advance the education of the public in themanagement of water. WRT coordinated a 4-yearTamar 2000 SUPPORT(SUstainable PracticesProject On the River Tamar) project as a partner-ship of local organisations to improve the ecologyof the River Tamar catchment(Cornwall andDevon, UK) (Tusa, 2000; Westcountry RiversTrust, 2002a). The emphasis was upon tacklingthe causes of problems, ownership of sustainableimprovements by land owners(many related toreducing inputs and improving habitat), demon-stration and delivery of economic savings andgains to farmers, diversification to deliver touristfacilities, and development of integrated farmplans. Five hundred farm businesses in the catch-ment were visited, and 300q integrated farm planscompleted covering an area of over 20 000 ha(22% of the catchment area). Targeted advice wassupported by an evaluation of catchment wetlands(Hogan et al., 2000), identifying substantive his-toric losses and the functional importance of extantwetlands. The results of the Tamar 2000 projectinclude restoration of 615 ha of river corridor,with 25 km of riverside fencing, and the identifi-cation and control of 67 areas of acceleratederosion through measures agreed with farmers.

Annual average cost and benefit values werederived for recommendations on 30 farms random-ly selected for economic study and assumed to berepresentative of the catchment as a whole. Somebenefits were evaluated at actual cost(such asfertiliser savings) but longer-term gains accruingbeyond the study period(such as improvement inwater quality) had to be estimated. Cost andbenefit values were extrapolated to catchmentscale, based on conservative assessments of thelikely rate of implementation, with benefits calcu-lated as either direct(to participant farmers) orindirect (to the local community, increasedemployment, tourism, angling, and the value ofthe river system as a national and internationalresource). WRT also set up an ‘Angling 2000’scheme(upon which the WUF’s ‘Passport’ schemeis modelled) to provide the economic incentivesto farmers and other land-owners for sustainingimprovements to habitat and land use practice(Westcountry Rivers Trust, 2003).

3.3. The Taw and Torridge catchments

A broadly similar partnership-based project wasundertaken by the WRT on the Taw and Torridgecatchments(Devon, UK), documented by Man-ning (2001). WRT officers assisted in the produc-tion of integrated farm plans for 330q farmbusinesses, selected to reflect demographics acrossthe catchment(total land coverage of 22 768 ha),supported by recommendations yielding both directand indirect economic benefits. As for the Tamar2000 project, targeted advice was supported byevaluation of the contribution of wetlands to eco-system functioning(Hogan et al., 2001).

Cost and benefit calculations combined actualand estimated data based on a conservative assess-ment of implementation, extrapolated to catchmentscale from the representative sample of farm-businesses. WRT operated the ‘Angling 2000’scheme on these catchments to create vested inter-ests for sustainable improvements. Two key rec-ommendations are that implementation of farmbusiness plans should be closely monitored andreviewed, and that detailed appraisal be undertakento verify conclusions.

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3.4. Additional Westcountry Rivers Trust projects

WRT is currently undertaking projects on otherriver catchments in South West England, includingthe Cornwall Rivers Project, the Dart, the Tale andthe Axe Valley catchment(reported in WestcountryRivers Trust, 2002b, 2003). The ‘Angling 2000’scheme has been extended to some of these rivers.

The Cornwall Rivers Project spans ten of Corn-wall’s most important fishery catchments: theRivers Lynher, lnny, Ottery, East and West Looe,Seaton, Fowey, Camel, Neet and Strat(Bude), Faland Cober. WRT scientists are working closelywith the farming community and riparian ownersto deliver land- and river-based management plans,riverbank protection measures, educational pres-entations, demonstration sites, and create a geo-graphical information system and catchmentmodels to help target fishery improvements. TheCornwall Rivers Project offers landowners or usersthe opportunity to receive a bespoke integratedfarm management plan, identifying opportunitiesfor saving money or raising additional revenues,and provide targeted, cost-effective suggestions toimprove water quality.

In the Dart catchment, WRT are initiating sev-eral new partnership projects to implement landmanagement sympathetic to the natural beauty ofDartmoor. Work includes mapping physical habi-tat, vital to the strategic management of the Dart’ssalmon stocks. Supported by the Atlantic SalmonTrust, WRT is also investigating the extent of highsea exploitation of Westcountry salmon stocksthrough research involving genetically typingsalmon from different river systems, and examin-ing samples from net catches to assess the relativeproportions of stock from each river. WRT is alsomanaging research into the genetic populationstructure of Dart trout, and working in partnershipto assess the acidity of Dartmoor streams.

The Tale Valley Project has involved 3 km ofprotective fencing to exclude cattle, with alterna-tive drinking sources provided, and over 500 m ofselective coppicing and pollarding. Most of thephysical work addressed the middle and lowerreaches, which showed the worst effects of deg-radation. Significant improvements to river habitatare anticipated with the rapid regeneration of

vegetation, which will provide habitat for a widearray of wildlife (including fish recruitment),defence against erosion, and sites for silt trappingand in-river purification processes. Further man-agement work is planned, addressing access formigratory salmonids.

The WRT set up the Axe Valley EnhancementProject in 2002 with the primary aim of workingwith the community and tackling the problems ofpoor habitat and water quality(particularly diffusepollution) in the Axe Valley catchment(Dorset,Somerset and Devon). Initial project funding hasbeen provided by the EU, statutory UK agencies,local authorities, agricultural organisations and pri-vate sources. Project work includes surveying theriver, assisting and advising riparian owners andfishing clubs on river corridor improvements. Incommon with other successful WRT projects, theemphasis is upon engagement with local farmers,local communities and other key local stakehold-ers, and addressing the protection and improve-ment of habitats, species, landscape, archaeologyand the historic environment. Practical workincludes undertaking free advisory visits, helpingland-owners to secure future economic benefit,setting up of farm demonstration sites and securingof funding for capital grants, developing trainingfor farmers and advisors, identifying priority areasparticularly in relation to river corridor works, andinvolving landowners in river protection schemes.There are promotions on waste minimisation andmanagement of bankside erosion, and explorationof ecologically-based methods for reducing floodrisk (for example through promoting water infiltra-tion). Early results stemming from a targeted localapproach include on-farm workshops to addresssoil management, to explore manure and nutrientmanagement issues, and the setting up of SoilConservation and Nutrient Plans. Forthcomingwork will address different aspects of farming bestpractice and riverside management.

3.5. The River Eden catchment

The Eden Rivers Trust(ERT), a charity formedin 1996, is undertaking theRestoring Eden Project(Eden Rivers Trust, 2002), supported by a socio-economic study(Eden Rivers Trust, 2003), to

14 M. Everard / Science of the Total Environment 324 (2004) 1–24

restore the ecology of the River Eden catchment(Cumbria, UK). The project is based on whole-farm audits, tackling water quantity, water quality,drainage, obstructions, agriculture, tree shading,forestry, roads and urbanisation, as well asenhancement of habitat. The ERT project inte-grates four related themes of: biodiversityyhabitatyland management; waterywetland; education; andtourism, recreation and the rural community. Eachinter-related theme is part of the fabric of asustainable rural community, with land use at itsheart. The ERT recognises tourism as the founda-tion of a fragile local economy, stating that,‘Whether walking, angling, bird watching or sight-seeing, it is dependent on the countryside lookingbeautiful, being managed in an environmentallyfriendly way and preserving our wildlife heritage’.This assumption was verified by impacts of the2001 Foot and Mouth Disease epidemic on theCumbrian economy. Research is being undertakento underpin the project, including electrofishing,aerial habitat and wetland surveys, and mitigationof socio-economic factors to help cope with thepressures arising from abstraction, pollution, over-grazing, habitat loss and land drainage.

3.6. The Tweed catchment

The River Tweed catchment(ScotlandyEnglandborder) covers 5200 km , with a topography rang-2

ing from high uplands to intensive arable land inthe East. Its rivers and streams support differentfish populations and display differing problems.The Tweed Foundation, a charitable trust, was setup by the River Tweed Commissioners in 1983 toprotect and promote the development of valuablefish stocks (particularly salmon, sea trout andbrown trout) and the river’s natural productivitythrough a programme of biological research, mon-itoring and habitat enhancement(www.tweed-foundation.org.uk). The Tweed Foundation’s work,in conjunction with farmers and landowners,emphasises enhancing headwater spawningstreams. The Ettrick and Yarrow tributaries provid-ed a particular focus for habitat restoration, withseveral miles of bank-side fencing and in-streamworks to provide improved structure.

3.7. Restoration on the rivers Cole and Skerne

The UK’s River Restoration Project(since 1998subsumed by the River Restoration Centrewww.therrc.co.uk) ran two projects from 1994 to1996, funded under the EU LIFE programme, todemonstrate the value of re-establishing more nat-ural river corridors (Risk and Policy AnalystsLimited, 1997). In addition to conservation, aes-thetic and other assessments, an economic evalu-ation of the projects was undertaken a year aftercompletion (Risk and Policy Analysts Limited,1997).

The River Skerne site(Darlington, County Dur-ham) provides an indication of the likely benefitsin an urban setting. Site characteristics and resto-ration techniques on the River Skerne are docu-mented in River Restoration Centre(1999). Theaim was to achieve a ‘riverside revival’, reversinghabitat destruction due to long-term historic flooddefence works, restoring amenity, recreation andwater quality improvements. Benefit assessmentwas supported by a public perception survey ofresidents.

The River Cole(Colesbourne, Wiltshire) stretchwas chosen to reflect likely benefits in a ruralsetting. Site characteristics and restoration tech-niques are documented in River Restoration Centre(1999). The rehabilitation exercise was based ona 2-km stretch that had formerly been straightened,deepened, widened and impounded.

For both projects, the range of estimates ofbenefits spans an order of magnitude(Table 2),reflecting uncertainties in ‘willingness to pay’ andother estimation methods, but demonstrates thatbenefits can be significant. Fishery monitoring dataindicate a particularly significant increase in fishbiomass immediately below the restored section,suggesting benefits accruing from the restorationacross the wider catchment, although benefitassessment was conducted only within restoredsections.

3.8. High Hullockhowe Farm

Some diffuse pollutants to both watercoursesand groundwater arise predominantly from agri-culture. Diffuse phosphorus(D’Arcy et al., 2000),

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pesticide(Skinner et al., 1997; Environment Agen-cy, 1999) and nitrate(Pretty, 1998) pollution areknown to be economically significant. Protectivemeasures and incentives are lacking for the upperreaches of catchments. Headwaters are particularlyvulnerable and of disproportionate importance forhydrological, chemical, ecological and landscapefunctions, so appropriate land use is of greatsignificance. Everard et al.(in press) document acase study relating to a successful partnership atHigh Hullockhowe Farm(Cumbria, UK), involv-ing the regional water utility(who is also the land-owner), the Royal Society for the Protection ofBirds (RSPB) and the tenant farmer. The utility’sinterest in water services focused attention on the‘downstream’ effects of interactions between landmanagement and the quality and quantity of water.Springs on the farm are headwaters for a streamimportant for abstraction, and practices on thefarm had previously contributed to pollution prob-lems that resulted in the economically-significantclosure of the abstraction point.

Agricultural change at the farm was undertakenby this partnership, with the objectives of protec-tion of water resources, addressing the decline incertain species of farmland birds, and seeking toinfluence policy-makers responsible for reformingagricultural subsidies. The collaboration and goodintent of all parties was essential, as statutoryrequirements and economic signals alone incentiv-ised continued polluting practices. A revised farmplan addressed the potential for direct and diffuseinputs to springs and watercourses, created arable‘pockets’ in the pastoral landscape, and introducedtraditional hay meadow management.

The most significant economic return was pro-tection, leading to the eventual reopening andsafeguarding, of the water abstraction. More sus-tainable land use was only made economicallytenable through support from the landowner(thewater utility), conservation grants, and volunteerlabour. Benefits were minimal from fertiliser sav-ings, re-utilisation of grain for sheep and changingpractice. However, this study illustrates the impor-tance of planning for multiple benefits simultane-ously, making benefit assessments inmulti-disciplinary ways, and focusing effort andinvestment into elements of habitat critical to

ecosystem(potentially catchment-scale) function-ing. It also demonstrates that substantial revisionof regulatory and incentive systems is essential topromote beneficial ecosystem functioning asimportant ‘outputs’ of land, in addition to foodproduction.

3.9. Other river-related initiatives

In 2001, the WUF, WRT, ERT and the TweedFoundation established the Association of RiverTrusts (ART), a coordinating body to facilitateexchange of information and promote their collec-tive interests on a national stage. A range of otherinitiatives for the protection and enhancement ofrivers, or attributes of rivers, may be found acrossthe UK. Some are outlined in Table 3 to illustratethe breadth of interests, although many more localand regional schemes are active in the UK. Manyof these schemes have delivered impressive results,although constraints of space necessitate highlight-ing only the previous schemes, from which impor-tant principles may be drawn.

4. Discussion

Several themes and principles emerge from thepreceding review of developments in thinkingabout catchment processes and ecological econom-ics, and of river-related schemes and initiatives.This discussion considers their relevance for shap-ing future policies to support sustainability.

The central importance of ecosystem functionsto sustainable social and economic progress emerg-es from consideration of developing scientificunderstanding, economic methods and successful‘grassroots’ schemes. Emerging understandingabout the functional value of catchments challeng-es inherited assumptions about favourable econom-ic and social development. The growing use ofcertain catchment functions for flood risk manage-ment, urban regeneration and other purposes indi-cates progress with the reshaping of public policy,but there evidently remains a shortfall in pragmatictools to accelerate the conversion of that under-standing into wider sustainable policy-making andpractice. This shortfall, particularly in its influenceupon land use, perpetuates statutory mechanisms

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Table 3Outline of selected catchment and regional initiatives(locations indicated in Fig. 1)

Petts et al.(2002) presents a case study ofProject Kingfisher on the River Cole in Birmingham, where 7 km of urban riverserved as a focus for urban regeneration, commencing in 1985, led by a partnership of the council, the water authority and localvolunteer groups. Engineered river structures and channels were removed, and pools and wetlands were constructed. No benefitsor costs are published, but the project helped regenerated wildlife habitat and rebuild rebuilt social cohesion through pride it theriverine environment and its returning wildlife.

Petts et al.(2002) provide brief case studies of various similar river-focused urban regeneration schemes, including ones on Tyne-side, Wearside, the City of Stoke-on-Trent River Strategy and the Medway riverside(see Fig. 1 for locations).

The Pembrokeshire Rivers Trust covers the South Western counties of Wales, and has raised funds for projects(including EUregional development funding). The Trust is strongly represented by anglers and fishery owners. This has been the case withother more established Trusts, with membership tending to broaden significantly as the Trusts grew.

The Lune and Wyre Fishery Association has undertaken significant fencing projects, funded mainly by EU regeneration funding,with some mitigation payments from private companies. The Association is seeking funding to further river restoration work.

The Ribble Catchment Conservation Trust was established on a charitable basis in 1998. It has undertaken some fencing work.Some charitable funds have been secured. Fund-raising remains a priority to enable further work to proceed.

The Wessex Salmon and Rivers Trust(WS&RT) is a charity formed in 1992, with a focus to date predominantly upon theHampshire Avon. As the title suggests, the target is recovery of salmon stocks, which wider associated economic and ecologicaldue largely to the breadth of habitat requirements of salmon throughout their life cycle.

The South West Land Use and Integrated Resource Management project commenced in 2003 as a partnership between the SouthWest Regional Development Agency, Wessex Water and Forum for the Future. It addresses the need to make tangible progresswith eight interconnected sustainable development themes(food production, forestry, renewable energy, conservation and biodiv-ersity, carbon management, flood control, waste and composting and tourism, recreation and education), achieving practicalresults by tackling them in an integrated way. Land use is at the core of the project, providing a focus for sustainable manage-ment of natural resources to generate lasting social, economic and environmental benefits.

EYE on the Aire(EYE) has worked since 1987 to improve the 21 mile stretch of the river Aire which flows through the city ofLeeds(Yorkshire, see Fig. 1 for location). EYE now has over 40 affiliated voluntary organisations, and representatives fromLeeds University, as well as major companies trading locally. Notable achievements include completion of two new naturereserves, annual State Of The River meetings held in Leeds, collaboration with Leeds City Council, the Environment Agency,British Waterways, Yorkshire Water(the regional water utility) and Ofwat(the economic regulator of the water industry). Targetsinclude improvement of water quality in the River Aire, promotion of sustainable urban drainage, leisure access to the river andpromotion of community clean-up of becks and streams feeding into the River Aire.

The Mersey Basin Campaign is a government-sponsored 25 year campaign, established in 1985 to improve, promote and regener-ate the rivers, streams, canals and coasts of North West England(see location of the Mersey in Fig. 1). It is today a partnershipthat brings together government, government agencies, local authorities, businesses, voluntary and community interests, educationand research within a common mission. The partnership has specific objectives addressing water quality(to restore and supportfish populations across the entire Mersey catchment), waterside regeneration, public awareness, education and communications.The Mersey Basin Campaign is widely-respected, and seeks to be a leader in integrated management and sustainable developmentfocused on the river basin as well as the wider North West region of the UK.(Available from: www.merseybasin.org.uk.)

Many local initiatives are in place across the UK, including the Malmesbury River Valleys Trust(on the Bristol Avon in Malmes-bury in Wiltshire), planned restoration of the River Foss(Yorkshire), the Tyne Improvement Association, the South West RiversAssociation, the Avon and Stour Rivers Association, and many more of varying scale.

At a far larger scale, the North Atlantic Salmon Trust was established to promote the interests of salmon stocks across the widebioregion, taking account not only of freshwater habitat needs but also overexploitation in estuaries and on the high seas. Oppos-ing forms of intensive exploitation that threaten salmon returning to rivers, the Trust has supported legal action by the WUF andother bodies contesting rights over drift netting. The Trust is also a sponsor of monitoring of returns from high seas capture, markand release in the WRT project on the River Dart.

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fragmented across narrow scales of space, timeand discipline, and also ‘perverse’ subsidies thatdegrade environmental quality and its supportivecapacities. Future policies to support sustainability,therefore, need to address protection and restora-tion of ecosystem functions, which will tend tooperate at scales greater than the locality of devel-opment or agricultural practice. Various practicalschemes reviewed in this paper, particularly thoseled by river trusts, have successfully placed resto-ration of riverine habitats and functions at the heartof sustainable social and economic progress.

The perceived slow evolution of statutory meth-ods to protect and enhance catchment functions,and their associated social, environmental andeconomic benefits, has stimulated the leadershipdemonstrated by voluntary organisations in a widerange of initiatives across the UK. The extent ofinitiatives, both geographical and in terms of scaleof operation, demonstrates the breadth of publicconcern for rivers and various of their attributes.Lead bodies are of varying sizes and geographicalhorizons, reflecting a diversity of local concerns.The benefits of various of these schemes havebeen evaluated in economic terms, particularly inthe EU-funded studies undertaken by river trustsand the work of the River Restoration Centre. Invirtually all initiatives reviewed, a pronounced‘groundswell’ of public aspiration is articulatedeven where potential and actual benefits have notbeen quantified. The efficacy of these approaches,demonstrated by responsible voluntary groups andpartnerships, has subsequently attracted support, inmany instances of a substantial nature, from EUand UK government. Frequently, these governmentfunds were released for the purpose of social andeconomic regeneration, quite apart from environ-mental improvement, reflecting the central role ofriverine ecosystems in the sustainable developmentof regions and localities. Voluntary organisationshave effectively addressed ‘gaps’ in statutory ini-tiatives, from which policy-makers have much tolearn about instigation of measures that gain pop-ular support and deliver optimal, integrated andsustained social, economic and environmental out-comes. This pattern of innovative thinking andpolicies towards river conservation emerging fromthe voluntary sector, subsequently embodied in

national legislation once societal value has beenproven, is a phenomenon observed world-wide(Boon et al., 2000).

Though often instigated to promote specificinterests, voluntary initiatives have tended to diver-sify rapidly to reflect and work towards beneficialoutcomes for a broad range of interests that aremutually dependent upon a thriving river environ-ment. A partnership approach to integration ofwildlife, tourism, traditional crafts, regional char-acter and other interests has been a consistent keyto success, harnessing wider support, a broaderbasis for project funding and maximising the totalbenefits of restoration works. Most ‘users’ ofriverine environments benefit from protection orrecovery of the natural functions of catchments,be that benefit realised through management ofinputs of silt, nutrients or other substances, or theenhancement of habitats, ecosystems, fisheries,water quality and natural beauty. A focus uponecosystem functions is, therefore, a unifying themefor the disparate beneficiaries of healthy riverenvironments. Headwater streams appear to be ofdisproportionately high importance to the function-ing of rivers, including supplies of water and thevitality of their fish stocks. They can providehighly cost-effective methods to restore water qual-ity for abstraction downstream, and the sameprinciple also seems to apply to the cost-effectiveecological recovery of catchments. Some river-related issues must, however, be addressed at widerscales, such as agricultural pollution, acidification,or high-seas over-exploitation of salmon. Some ofthe voluntary-led initiatives reviewed in this paperhave begun successfully to address these broaderchallenges, establishing ecological outcomes fromwhich appropriate measures can then be identified.In a number of these schemes, ecological improve-ments are also aimed at providing quantified socialand economic benefits, consistent with the intentof ‘good ecological status’ targets for sustainablemanagement of water specified in the WaterFramework Directive(WFD). Collaboration withtrans-boundary organisations such as the NorthAtlantic Salmon Trust, and federations such as theART, offer leverage to tackle issues at politicaland legal levels.

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Instigating interests have commonly been fish-eries, perhaps reflecting the economic and socialvalue of fisheries and the dependency of fishstocks upon a diverse and healthy environment forthe sustenance of different species and life stages.Salmonid fisheries, particularly migratory salmo-nids, have been at the root of many of theseinitiatives. This may reflect their vulnerabilityacross a broader range of habitat needs, not onlythroughout the river corridor but also in headwaterspawning redds and, for anadromus fish species,including marine and estuarine environments.Sometimes, these fishery-initiated schemes havebeen unjustly criticised for representing a narrowsector of private UK interests. However, econom-ically and recreationally exploitable fish popula-tions serve as valuable ‘flagships’ indicative of thevitality of the whole supportive aquatic ecosystem,the longer-term success of restoration, and theecosystem’s economic and social potential.

Economic analysis has in many cases provenpersuasive, although the quality of economicappraisal varied considerably between schemes.Some of the more robust analyses, often whereprojected benefits were an essential component ofthe bid for funding, demonstrate strongly positivebenefit–cost ratios. Generally, they achieve this onthe basis of ‘hard’ economic criteria without unduedependence upon non-market attributes which,though indicative of real benefits, are more hotly-contested and consequently carry less weight withdecision-makers. Subsequent inclusion of non-mar-ket values over and above use-related benefits canonly, therefore, increase total benefits accruing,although the extent to which non-market costs arealso externalised calls into question the net impactupon benefit–cost ratios. Economic appraisal can,therefore, be helpful in demonstrating the valuefor money of restoration initiatives, though inmany instances initiatives were less robustly testedin economic terms or else cursory analyses provedadequate to justify investment where public sup-port was strong. Given the widespread acceptanceof the principle of ecological enhancement orprotection to support social and economic progress,it is essential not to lose sight of the enabling roleof economic appraisal rather than to follow itslavishly as an end in itself.

The importance of accounting simultaneouslyfor multiple benefits emerges as a common lesson,supporting integrated approaches to catchmentdevelopment that simultaneously yield a range ofbenefits. Some poorly-understood but potentiallycritical ecosystem services(such as pollination)may not be quantifiable, yet valuation of a rangeof known higher-value and better-understood eco-system services can serve to some extent as asurrogate(Kremen et al., 2000).

The present economic and regulatory paradigmin the UK currently appears ill-adapted to protector enhance catchment integrity and functioning.This traditional economic model drives land useand other decisions of direct relevance to ecosys-tem functioning within catchments, and the ‘knockon’ economic and social costs arising from theirsystematic degradation. The economic and socialimpacts of lost and degraded riverine systems andbiodiversity are severe yet almost never docu-mented, with every segment of society payingheavily for a range of detrimental effects(Doppettet al., 1993; Boon et al., 2000). Indeed, they tendto result in the public paying twice for damagedecosystems, firstly in the form of subsidies foractivities that degrade catchment functioning andsecondly through compensatory investment inwater treatment, flood defence, silt clearance, fish-ery support and other measures ‘downstream’(Everard, 2002b; Everard and Powell, 2002). Astark example is provided by current conservation-related payments within the EU’s Common Agri-cultural Policy(CAP), which account for only 6%of the total CAP budget leaving 94% of theeconomic incentives for farming focused on pro-duction regardless of method.(The European Envi-ronment Agency(2003) report that the total CAPbudget is approximately equivalent to £30 billiona year, or half the EU’s £60 billion annual budget.)

Strategic management of water resources inevi-tably needs to focus on the land resource of thecatchment, from where many problems stem andupon which many of the beneficial functions ofriver systems depend. Wetlands are of particularsignificance, yet are not greatly valued by farmers(Rispoli and Hambler, 1999). More sustainableforms of agriculture appear to be a key dependencyof more sustainable rivers. Innovative economic

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instruments are required to support appropriateland management, including explicit measuressuch as ‘farming’ for water quality, flood defence,or other catchment functions. Indeed, there is anurgent need for the integration of sustainabilityinto all policies and incentives. The ‘Curry Report’to the UK Government,Farming and Food: ASustainable Future (Curry, 2002), challenges oldbeliefs that land use should solely be directed atfood production, proposing that wider ecologicalbenefits should be factored into remuneration anddecision-making systems. This is consistent withthe view of Porritt and Redwood(2002) and Pretty(2002) that sustainable farming must be bothadapted to locality as well as being ‘multifunction-al’, recognising both food and ecosystem serviceoutputs with appropriate remuneration for each. AsPretty (2002) puts it, ‘The challenge is to findways of substantially greening the middle of farm-ing—in the field rather than around the edges’.Revisions to agricultural subsidy schemes createopportunities for more sustainable land use, pro-vided the right messages are conveyed to andunderstood by decisions-makers. Pretty(2002) sets‘the provider gets’ as a principle of equal weight-ing to ‘the polluter pays’ in the achievement ofsustainable land use. In the absence of strongstatutory methods for hypothecating revenues frombeneficiaries back to providers, creative commu-nity-level initiatives have been innovated.

Whilst ‘big picture’ structural adjustments areimportant to drive forward more sustainable catch-ment use, these must be balanced by local solutionsthat address local needs and issues. The successfulschemes reviewed in this paper have indeed beeninstigated by and have addressed local causes ofproblems, and local involvement and ownership ofboth problems and solutions. Advice has beentailored both to the needs of river systems and theself-interest of farmers and other land-owners toensure improvements are sustained, including forexample the tailoring of advice on changing agri-cultural practice that yields self-benefit as well asecological gains, fishery development and novelmarketing to yield economic returns and the har-nessing of public concern to deliver beneficialcommunity-wide outcomes. To be truly sustainableand therefore to persist once interventions have

ceased, all policies must be pragmatic and yieldclear local benefit andyor clearly-articulated com-mon good. These methods are consistent with theobservations of Pretty and Frank(2000) that‘ «equitable sharing of costs and benefits of betterenvironmental management, that are not simplymarket-driven«’ and can best be achieved by‘ «the emergence of progressive community organ-isations with the legislative support to developstrategies’.

Management plans should be inclusive of allinterests in rivers as this leads to more cost-effective and sustainable improvements, is betterattuned to recognising the pivotal importance ofecosystem functions, and maximises total benefits(and potentially though not automatically benefit–cost ratios). Systemic and sustainable approachesto catchment management, consistent with thepurposes and articles of the EU WFD, are urgentlyrequired. Novel approaches to CFMP begin theregulatory transition towards local decision-makingwithin the context of the catchment as a whole,promising wider spatial, temporal and cross-disci-plinary scales of thinking. The WUF, WRT andERT projects already take a whole-systemsapproach, recognising ecosystem functioning inriver systems and wetlands as central to social andeconomic regeneration. By a coincidence of inter-ests, the water utility at High Hullockhowe Farmfulfills the role of enlightened benefactor as wellas beneficiary of enhanced ecosystem functioning,providing a model for wider cross-society regula-tory approaches appropriate for sustainable catch-ment management. Such systemic thinking,currently absent from most regulatory and econom-ic instruments, is essential to deliver step-changesin water and environmental quality.

Ecosystem processes may be particularly signif-icant in addressing diffuse pollution pressuresacross catchments, long thought of as intractable.The net costs of diffuse pollution from agriculture,where evaluated, are significant. There is alsosubstantial evidence that cleaning up the effects ofdiffuse pollution outweighs the costs of prevention(D’Arcy et al., 2000), demonstrating the catch-ment-scale benefits of improved land stewardship.Practical examples in this review, including thoseat High Hullockhowe Farm as well as the broad

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spectrum of projects undertaken by river trusts,demonstrate that targeted protection or restorationof priority habitats can restore aspects for ecosys-tem functioning to manage diffuse pollution, withsignificant economic as well as ecological efficien-cy. Requirements of the EU nitrates and WFDsprovide further persuasive policy drivers for dif-fuse pollution control to address the protection orrestoration of riverine ecosystems for catchment-scale and multifunctional benefit.

An important change necessary to deliver thebenefits associated with improved ecosystem func-tions is in the attitude to biodiversity held by thepublic and by policy-makers, whose expertise maynot be primarily ecological. All too commonly,biodiversity is perceived in practical terms as anet cost or a constraint upon development for‘conservation’ reasons(Everard and Powell,2002). The change in mindset is a recognition,and a working understanding, that natural capitalis the primary resource underpinning social andeconomic progress. There is urgent need for furtherresearch in this area as, for example, major deci-sions relating to sustainable land managementrequire information on how the delivery of eco-system services might change under a series ofalternative scenarios(Salzman, 1997). However,whilst scientific opinion about the exact relation-ship between biodiversity and ecosystem functionis equivocal, and understanding about how nature‘produces’ those functions is substantially lacking,it is at least beyond question that the livingcomponent of catchments and other habitats is oneof the primary agents of those productive andregulatory processes as well as the primary indi-cator of system integrity.

If we aspire towards sustainability, the necessarychanges in attitude, policy, economic incentivesand practice are substantial. However, they areachievable, provided leadership and decision-mak-ing occurs at the right scale. Cost is a perceivedbarrier, although the defensive costs downstreamto mitigate degraded ecosystem functions of cur-rent unsustainable land use(such as ‘hard’ flooddefences, costs of water treatment, fishery andconservation enhancement or lost amenity) arelargely externalised from economic instrumentsand management considerations. Furthermore, evi-

dence in this review suggests that sensitive catch-ment management could have a significantlypositive benefit–cost ratio when assessed acrossappropriate scales of time, space and discipline.The benefits of conservative management of eco-systems often outweigh the costs when the truevalue of natural capital(including ecosystem serv-ices) is properly calculated. However, the compar-atively low cost of maintaining the biodiversitythat underpins the ecological services upon whichsociety and the economy depends is frequentlyignored(James et al., 1999). James et al.(1999)calculate that, ‘If subsidy reform were linked toinvestment in environmental protection, a smallshift in government spending patterns wouldaccomplish major conservation objectives’, esti-mating that major gains could be achieved byredirecting as little as 2% of the $1 trillion annualgovernment expenditure on ‘perverse’ subsidiesthat harm biological diversity. Utilisation of habitatof disproportionate functional significance, such asheadwaters or riparian wetlands, may make anequally disproportionate contribution to the totalhydrological, physico-chemical andyor ecologicalfunctioning of catchments, providing ‘hotspots’upon which to target cost-effective managementintervention. The obstacle to progress is politicalwill to change patterns of government expenditure,and the key challenge lies in distributing thepayments fairly. The case made by Cotton andEkins(1998) for the transition of the UK economytowards renewable energy applies equally to catch-ment management: ‘«there are no good groundsfor thinking that the transition over the course ofthe twenty-first century to a low or no carbonenergy system will be expensive, or even incur anycosts at all, apart from those of proactive govern-ment policy. The transition is better perceived asa guided, fundamental structural change in aworld where such change, guided or not, is occur-ring the whole time.’ This comment is particularlypertinent for UK and EU farming, which allacknowledge as undergoing profound transition.

As developed society increasingly faces sustain-ability challenges, we are at last beginning todevelop the knowledge necessary to manage catch-ments sustainably. The preceding paragraphs iden-tify a range of principles for transition towards

21M. Everard / Science of the Total Environment 324 (2004) 1–24

sustainable catchments. These include placing eco-system functions at the heart of sustainable devel-opment, the scales at which thinking needs tooccur, appropriate economic and regulatory sig-nals, and the leadership of the voluntary andprivate sectors. Partnership emerges as of vitalimportance, with participants contributing to andbenefiting from a shared vision. Pragmatism isalso a watch-word for success, recognising thatbig successes are possible where small but well-targeted changes can be put into effect and areappropriately rewarded. Strategic improvements toriver systems reinforce their capacity to supportsocial and economic progress, representing soundand sustainable investment.

Acknowledgments

Special thanks are due to Dr Anne Powell(Freshwater Life), Dr Stephen Marsh-Smith(Wyeand Usk Foundation), Arlin Rickard (Associationof Rivers Trusts and Westcountry Rivers Trust),Alastair Maltby (Eden Rivers Trust), Nick Yonge(Tweed Foundation), Dr Martin Janes(River Res-toration Centre), Dr Roger Sweeting(FreshwaterBiological Association), Dr Paul Raven(Environ-ment Agency), Rob Jarman(National Trust) andBob James(Anglers’ Conservation Association).Many thanks to Ann Skinner and Dr Jackie Vale(Environment Agency) for their patience withediting late drafts. Whilst the author acknowledgeshelp from many of the organisations listed in thispaper, the views expressed here are entirely hisown.

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