Author(s)

J. A. Vásquez P.

Abstract

This paper accomplishes an economic analysis of a governmental policy instrument for basins protection in Colombia. According to the Colombian environmental regulation, every project that uses the hydric resource from a natural source, shall perform a mandatory investment in protection of the involved basin of 1% of the total economic cost of the operation project. (Act 99, 1993. Republic of Colombia). This paper is based on a case study of an hydroelectric power project on the Chico River’s basin, located in the municipality of Belmira, Department of Antioquia (Colombia, South America). The analysis is based on the economic value that the Community of Belmira assigns to the environmental services, product of water resource, within the influence area of the Chico River’s Basin. This economic value is obtained using the Conjoint Analysis Method. Finally, it is concluded that this governmental policy instrument (the mandatory investment of 1% of operation project total economic cost) is not apt or recommended to preserve the water resources of the Chico River’s basin, since the investments that accomplishes the hydroelectric power project in protection of the basin does not compensate the economic value that the Belmira’s Community assigns to their water resources. In that sense community does not have incentives to protect the hydric resources of the basin and the policy is not effective since it does not complies with the objective it was designed for. Keywords: environmental economy, conjoint analysis, environmental services, environmental legislation, environmental policy, natural resources.

Keywords

environmental economy, conjoint analysis, environmental services, environmental legislation, environmental policy, natural resources.