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Estimating the benefits of low flow alleviation in rivers: the case of the Ticino River

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  • Loa Buchli
  • Massimo Filippini
  • Silvia Banfi

Abstract

In Switzerland 60% of electricity is produced by hydropower plants. The construction and operation of these plants determine some negative environmental externalities, such as diminishing groundwater levels and spring flows, and a reduction in river flow, which can severely curtail recreational and fishing activities. This study concentrates on an ex-ante appraisal of the monetary benefits resulting from an enhancement of river flow for recreational fishing purposes. A comparison of estimates of these benefits to the corresponding costs, in terms of loss of electricity production, incurred by hydropower plants to alleviate low flows may be useful for policy makers. For this analysis, as suggested by Layman et al. (Land Economics 72, pp. 113-128, 1996), the Travel Cost Method (TCM) is extended to estimate the economic value of recreational fishing in the Ticino River (the most important river of the Canton Ticino) under existing and hypothetical river flow conditions. Anglers were asked to state how the number of trips they took to the Ticino River would change if an increase in the river flow was imposed on the hydropower plants. The empirical results show that an enhancement of river flow increases the annual consumer surplus for a typical angler by approximately 440 SFr.

Suggested Citation

  • Loa Buchli & Massimo Filippini & Silvia Banfi, 2003. "Estimating the benefits of low flow alleviation in rivers: the case of the Ticino River," Applied Economics, Taylor & Francis Journals, vol. 35(5), pages 585-590.
  • Handle: RePEc:taf:applec:v:35:y:2003:i:5:p:585-590
    DOI: 10.1080/0003684032000056797
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    Cited by:

    1. Eva Vicente & Pablo de Frutos, 2011. "Application of the travel cost method to estimate the economic value of cultural goods: Blockbuster art exhibitions," Hacienda Pública Española, IEF, vol. 196(1), pages 37-63, january.
    2. Ovchinnikova, Natalia V. & Czap, Hans J. & Lynne, Gary D. & Larimer, Christopher W., 2009. ""I don't want to be selling my soul": Two experiments in environmental economics," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(2), pages 221-229, March.
    3. Mattmann, Matteo & Logar, Ivana & Brouwer, Roy, 2016. "Hydropower externalities: A meta-analysis," Energy Economics, Elsevier, vol. 57(C), pages 66-77.

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