The concept of environmental economics has become crucial today as a means of ensuring ecosystem sustainability. Research was conducted between June - July 2025 in Batutegi Village Lampung Province. Hydrological analysis using SWAT+ indicates that water yields - the contribution of water to the dam - is influenced by the area’s biophysical characteristics, land use, vegetation cover, slope steepness, and the landscape’s capacity to store and release water. Villages with superior vegetation cover and robust hydrological functions play a vital role in sustaining the water supply for the Batutegi Dam. Valuing environmental services via the replacement-cost approach provides an economic basis for quantifyng the village’s ecological contribution to the sustainability of the hydroelectric power plant (PLTA). Economic valuation schemes addressing landscape changes can serve as instruments to enhance the economic wellbeing of local communities affected by land-use change linked to the power plant, without compromising ecosystem sustainability. This approach not only reinforces ecological arguments but also establishes a quantitative foundation for policies regarding payments for environmental services, conservation financing, and the reinvestment of hydroelectric benefits into upstream communities.
Oleh :
Margareta Maria Sintorini
