The Lost Value of Groundwater: The Case of Asopos River Basin in Central Greece

Due to the unique nature of the environmental damage, mainly by Cr(VI), the pollution of the Asopos river basin aquifer in Greece has been recently characterized as an ‘environmental crisis’. This paper presents the results of the first attempt in Greece to value the environmental damage to groundwater and to estimate its total economic value using environmental economics. Towards this direction a Contingent Valuation study was conducted, covering the settlements mostly affected in the area. The results indicate that local households are willing to pay an extra monthly charge in voluntary basis for ten years, in order to restore the aquifer under investigation. Different household profiles show different willingness to pay, depending on attitudes against the environmental damage, population age and place of residence. The elicited estimates seem to reflect mostly non-use values and, although smaller than actual private and public expenses for the replacement of the lost public good, the findings are promising and may serve as a spark for future research.