Appraising Services to the Ecosystem: An Analysis of Itaipu Power Plant’s Water Supply in Energy Generation

Abstract

Among the approaches derived from the interface between sustainability and economic theory, the pursuit of appraising the economic value of natural resources, based on the evaluation of services to the ecosystem as a mechanism for environmental assessment and as a support tool for investments in preservation both by government and businesses is emphasized. The objective of this study is to analyze the geographic reach and distribution of Itaipu power plant’s investments in environmental programs, among which their following actions: (i) sediment monitoring; (ii) micro-pollutants; (iii) water quality; (iv) vegetation management of the reservoir protection range; and (v) management of river basins, considering the area of influence and the water contributions of the municipalities upstream of its reservoir. A quantitative research approach was used to collect information on investments and water contributions from the analysis of water supply. It was observed that 94.6% of the investments were concentrated in regions whose water contribution to the generation of energy was less than 4%. From a results perspective, opportunities were identified for expanding investments in environmental preservation to other areas with greater relevance to maintenance of power generation.