Ing. Ondřej Vojáček, Ph.D.

1. Ing. Ondřej Vojáček, Ph.D. What is the water quality in Czech Republic worth for? Lake Macha case

2. Lake Macha (tourist map; 2013)

3. Lake Macha (historical map; 1850)

4. Water quality at Lake Macha beaches (according to the Directive 1976/160/EC and the New Bathing Water Directive 2006/7/EC) Source: Bathing water quality annual report, Bathing water results 2007, online: http://www.eea.europa.eu/themes/water/status -and-monitoring/state-of-bathing-water-1/bathing-water-data-viewer

5. Why did we study Lake Machalocation? • High visit rates • Long-term problems with excessivewater eutrophication (problem escalated in 2004) • Notable change in water quality between 2004 and 2005 • Significant effect on local economy – perceptible endeavor to resolve the problem

6. Research interests • What value place the Lake Macha visitors on the water quality? • Do the Lake Macha visitors distinguish between algae and cyanobacteria? • Is that economically efficient to invest into the water quality measures on the Lake Macha?

7. Alternative stated preferences method Lancaster‘s attribute theory (1966) Allow valuation of non-market effects of a change in environmental goods In environmental economics since the early 1990´s Consumer choice model: the consumer derives satisfaction not from the good as such, but from qualities or attributes that the good provides Choice modelling

8. Data (sampling 2007) • Group interviews focusing on waterside recreation (Prague) • One-to-one interviews focusing on waterside recreation (LM) • Construction of questionnaire and two rounds of preliminary survey • July & August: main data collection • Collected 331 valid questionnaires: representative sample of the population of visitors to LM

9. Sample description

10. Choice experiment design Attributes description

11. Choice experiment design Attributes description

12. Choice experiment design Example of the choice experiment card

13. Choice experiment: modeling results

14. Rq1) What value place the Lake Macha visitors on the water quality? • Status quo: slightly polluted water (no algae, no cyanobacteria): • Clear water WTP: 4,8 EUR(no algae) • Dirty water WTP: - 13 EUR (cyanobacteria) PAYMENT PER DAY AND VISITOR Improvement Worsening

15. RQ2) Do the Lake Macha visitors distinguish between algae and cyanobacteria? • People place different value for both: • water with only algae, • water with cyanobacteria • The reason can be swimming possibilities(see choice experiment attribute design)

16. RQ3) Is that economically efficient to invest into the water quality measures on the Lake Macha? • Methodology: Cost-benefit analysis • Costs: • Renovation of sewer network in Doksy • Separation of inlet by Doksy + regular mud removal • Changing fish population • Regular application of PAX 18

17. Costs and benefits in time (CZK million)

18. Sensitivity analysis for CBA

19. CBA results • The net social benefits of the anti-phosphorus measures were estimated at CZK 263 million • Phosphorus treatment is socially beneficial • Measures adopted and planned at Lake Mácha are highly economically efficient. • Critical factors: visit rates and • potential inaccuracy of the WTP study

20. Thank you for your attention  Ing. Ondřej Vojáček, Ph.D. ondrej.vojacek@gmail.com