Estimating the Economic Value of Landscape Losses Due to Flooding by Hydropower Plants in the Chilean Patagonia

This paper presents a contingent valuation study concerning landscape impacts generated by the construction of one dam (Baker 1) of the HIDROAYSEN hydropower project located in the Chilean Patagonia. A survey was used to collect information about citizens’ opinions towards the hydropower project in four major cities in Chile. Specifically, a One‐and‐One‐Half‐Bound (OOHB) willingness to pay eliciting format was applied to capture citizens’ WTP. The economic loss, associated to the landscape impacts for people living in urban areas of the country, is found to be approximately US$ 205 million, which is nearly 28% of the total investment. Our results also show that the cities’ distance from the dam affects citizens’ willingness to pay.