Managing water risks in the Netherlands at the least cost to society

This chapter provides an overview of the current Dutch approach to determining an acceptable level of water risks and managing them at the least cost to society. Drawing on the OECD’s framework for water security, it examines how an acceptable level of water risks is determined (either explicitly or implicitly) in Dutch water management. The chapter then proposes options for achieving a better balance between the economic, social and environmental consequences of water risks and the cost of amelioration. The chapter also provides an overview of the current approach to managing water risks. Some limitations of current approaches are illustrated by case studies, which document the weakness of some economic incentives and a lack of consistency across policy areas, which drive up the cost of water management today and in the future. Policy options to improve the incentives for public and private actors to better manage water risks are proposed.