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The Economic Value of Allocating Water to Post-Mining Lakes in East Germany

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  • Nele Lienhoop
  • Frank Messner

Abstract

This paper reports a contingent valuation study to value the economic benefits of a post-mining lake-district in East Germany. Lusatia Region faces serious water scarcity problems as the closure of mining pits in 1990 led to the termination of groundwater discharge into rivers. The water conflict centres around traditional water users whose water demand is no longer met and the rehabilitation of mining pits in form of a new lake-district. Current water allocation policy for the Elbe catchment places lowest priority on filling mining pits with river water, even though freshwater is essential for good lake water quality. Commissioned by the government, this study aims to determine the non-market benefits that would be generated by good water quality in the lake-district in order to re-assess the distribution of water among all water users in the Elbe catchment. Our findings show that the annual non-market benefits of the lake-district is significant and lies between 10.4 and 16.2 million euros. Apart from recreational benefits, people also obtain non-use values for the lake-district. Furthermore, two challenges for CV became apparent: fuzzy future benefits (potential improvement to the regional economy) significantly influenced WTP estimates, and WTP stated by users interviewed on site and at home varied significantly. Copyright Springer Science+Business Media B.V. 2009

Suggested Citation

  • Nele Lienhoop & Frank Messner, 2009. "The Economic Value of Allocating Water to Post-Mining Lakes in East Germany," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 23(5), pages 965-980, March.
    • Handle: RePEc:spr:waterr:v:23:y:2009:i:5:p:965-980
    DOI: 10.1007/s11269-008-9309-x
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    References listed on IDEAS

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    1. Guy Garrod & Kenneth G. Willis, 1999. "Economic Valuation of the Environment," Books, Edward Elgar Publishing, number 1368.
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    2. Isabel Mendes, 2013. "Mining Rehabilitation Planning, Mining Heritage Tourism, Benefits and Contingent Valuation," Working Papers wp032013, SOCIUS, Research Centre in Economic and Organisational Sociology at the School of Economics and Management (ISEG) of the University of Lisbon.
    3. Wilker, Jost & Rusche, Karsten & Benning, Alexander & MacDonald, Michael A. & Blaen, Phillip, 2016. "Applying ecosystem benefit valuation to inform quarry restoration planning," Ecosystem Services, Elsevier, vol. 20(C), pages 44-55.
    4. Meena Kumari Kolli & Christian Opp & Daniel Karthe & Nallapaneni Manoj Kumar, 2022. "Web-Based Decision Support System for Managing the Food–Water–Soil–Ecosystem Nexus in the Kolleru Freshwater Lake of Andhra Pradesh in South India," Sustainability, MDPI, vol. 14(4), pages 1-13, February.
    5. Malte Grossmann & Ottfried Dietrich, 2012. "Integrated Economic-Hydrologic Assessment of Water Management Options for Regulated Wetlands Under Conditions of Climate Change: A Case Study from the Spreewald (Germany)," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(7), pages 2081-2108, May.
    6. Burton, Michael & Jasmine Zahedi, Shegufa & White, Ben, 2012. "Public preferences for timeliness and quality of mine site rehabilitation. The case of bauxite mining in Western Australia," Resources Policy, Elsevier, vol. 37(1), pages 1-9.
    7. J.-D. Rinaudo & S. Aulong, 2014. "Defining Groundwater Remediation Objectives with Cost-benefit Analysis: Does It Work?," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 28(1), pages 261-278, January.

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