HYDROLOGICAL SERVICE OF WATER SUPPLY IN THE AMAZON BASIN: A VALUATION EXERCISE

This paper seeks to estimate the monetary value generated to the economy by the private goods and services derived from the water supply service in the Amazon Basin. The valuation was based on the value realized via market prices, as a measure that expresses the preferences of the associated agents in each case. In the valuation exercise, the price of the asset is interpreted as the marginal benefit (willingness to pay) in the last unit purchased. The goods evaluated were: treated water for human and industrial consumption, water for livestock consumption, hydroelectricity, fishery resources, river transport of cargo and passengers. As a result, the monetary value generated by the direct use of water resources was R$ 18,234.010 million, with a predominance of hydroelectricity (58.94%), followed by water consumption for industrial use (15.18%) and river cargo transport (13.63%). This amount comprises 10.27% of the gross value of industrial production in the region.