Economic Loss of Hydropower Caused by Sedimentation and Institutional Role for Cirata Dam Management

Abstract

Cirata dam, a man made resource, included in the The Common Pool Resources (CPRs). Trend of CPRs are over use and produce externality. The impact of these externalities are the mass death of fish in pondfish, corrosive plant equipment, decreased production of hydroelectric power and the most important suistainability of dam. At least 3 sectors inside activity which contribute these sedimentation: fisheries, agriculture, and domestic activities. The objective of this study are to estimate which pollutant’s source that contribute to sedimentation by estimating the solid and liquid waste; estimating economic losses of hydropower and analyze appropriate institutional model as the CPRs dam management. Data analysis for estimating economic losses using benefit-cost analysis and for institutional analysis using Dolsak&Ostrom approach. The results showed that the main source of pollution comes from fisheries sector. The contribution from solid waste 742 ton/day and from domestic ativities 58 ton/day. The willingness to pay community for waste management program is Rp25.000/month for fisheries family and Rp6.175,00/month for non-fisheries family. Hydropower losses is Rp11 million comes from 8 years remain life time reservoir. Cost of enviromental improvement is Rp65 million. Institutional analysis showed that management of dam are low enforcement, high demand of dam product, no leading sector for collective action, and there is the political interest. The study emphazed the importance of institutional arrangement for dam suistainability management.