The impact of water quality and water level on the recreation values of Lake Hume

Abstract

Lake Hume is a significant water storage located at the headwaters of the River Murray. It provides irrigation water, urban water supplies, flood mitigation and recreational benefits to a large and economically significant region. Water quality in Lake Hume has recently been the subject of investigation in response to continued evidence of eutrophication, in the form of blue-green algal blooms. This article reports the results of estimates of the recreational values of visitors to Lake Hume under different water quality and water level scenarios using the contingent travel cost method. Accordingly, the article provides insights into the economic relationship between water quality in Lake Hume and the recreational activities undertaken on and near the lake. The study found recreational values of about $3 million per annum when the lake is near capacity, and the threat of algal contamination is low. A diminution of the water level to about half reduces the value of these benefits by about.

Keywords:

• Lake Hume
• water quality
• non-market valuation
• contingent travel cost method