Revitalizing transformed landscapes: Economic valuation of artificial lake shorelines for hydropower generation

The expansion of hydroelectric energy in Chile, renowned for its contribution to energy sustainability , positively impacts socioeconomic development through ecological compensations. Employing the Contingent Valuation Method, the willingness to pay (WTP) for access to these transformed spaces is revealed, indicating a positive economic appreciation and valuation of compensation initiatives. This study highlights the dams’ capacity to enhance community well-being by creating recreational spaces, reflecting strong community support with an average WTP of 2043 Chilean pesos (CLP$) for access to these transformed sites. The data indicate a positive valuation towards compensation initiatives, underscoring the effectiveness of hydroelectric dams in driving local development while preserving the environment. The integration of hydroelectric management with tourism and recreation has promoted a sustainable development model, valuing both natural resources and human capital. In conclusion, this study emphasizes how community-backed ecological compensation strategies, based on a solid perception of ecological and recreational value, can lead to substantial socioeconomic benefits, reinforcing the link between hydroelectric development, socioeconomic progress, and environmental sustainability.