The benefits of water quality improvement in municipal water use are measured empirically both from the supply side and from the demand side. On the supply side the benefits of water quality improvement are measured by means of a so-called cost-saving approach. On the demand side the costs of the averting behavior of consumers are considered to be one indicator of the benefits of water quality improvement. Whereas from the results of empirical application water quality improvement in Lake Biwa will bring cost saving of 40.8 billion yen year−1, the benefits on the demand side are estimated to be at least 200 billion yen year−1.
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