Economic valuation of resuscitating the Dead Sea Nir Becker a and David Katz b a Corresponding author. Department of Economics and Management, Tel-Hai College, 12210 NRERC, University of Haifa, Mount Carmel, Haifa, Israel. Tel: þ 972-4-6900976, Fax: þ 972-4-6900761. E-mail: nbecker@telhai.ac.il or nbecker@econ.haifa.ac.il b School of Natural Resources, University of Michigan, Dana Building, 440 Church Street, Ann Arbor, MI , 48109-1041, USA Received 30 June 2005; accepted in revised form 11 August 2005 Abstract As a result of diversion of upstream waters and intensive mineral extraction along its shores, the level of the Dead Sea is dropping at a rate of almost one meter per year, causing the sea continuously to break its own record as the lowest place on earth. The loss of the sea and the accompanying ecological and cultural damage in the basin has traditionally been regarded as an unavoidable consequence of rational economic policy. This study investigates for the first time the non-market economic value of conservation of the Dead Sea basin using both contingent valuation (stated preference) and travel cost (revealed preference) studies. Study results indicate that all three local populations, Israeli, Jordanian and Palestinian, demonstrate a substantial willingness to pay to preserve the cultural and environmental heritage of the region. Such results strengthen the case for conservation of the region, which, heretofore, has relied strictly on ethical and ecological rationales. Keywords: Conservation; Contingent valuation; Dead Sea; Travel cost; Water management 1. Introduction Owing to diversion of tributary waters and intensive mineral extraction, the level of the Dead Sea is dropping at a rate of up to one meter per year, causing it continuously to break its own record for being the lowest place on earth. As a result, the surface area of the sea has already shrunk by one-third, springs around the sea are drying up and sinkholes (areas of severe land subsidence) are forming, threatening historical sites and infrastructure. Lying between Jordan, Israel and the West Bank, the Dead Sea is a terminal lake fed primarily by the Jordan River. While the governments of the region have expressed concern over the threats to doi: 10.2166/wp.2006.050 Water Policy 8 (2006) 351–370 q IWA Publishing 2006