Willingness to pay to improve urban water supply: the case of Sucre, Bolivia

Water Policy ◽  
2014 ◽  
Vol 17 (1) ◽  
pp. 112-125 ◽  
Author(s):  
Salvador del Saz-Salazar ◽  
Francisco González-Gómez ◽  
Jorge Guardiola
Keyword(s):  
Willingness To Pay ◽  
Water Supply ◽  
Selection Bias ◽  
Contingent Valuation Method ◽  
Sample Selection ◽  
Sample Selection Bias ◽  
Urban Water ◽  
Urban Water Supply ◽  
Valuation Method ◽  
Protest Responses

In this study the contingent valuation method is applied in order to estimate the willingness to pay (WTP) of the inhabitants of Sucre (Bolivia) for an improvement in the urban water supply system. The study finds that about 55 per cent of households would be willing to pay an increase in their water bill for an improvement in the service. In order to deal with the problem of protest responses and the possible presence of a sample selection bias, a Heckman two-step model was estimated. More specifically, the econometric analysis undertaken reveals that there is no evidence of sample selection bias and that WTP positively relates to the respondents' household income, their level of education, the continuity of the water supply service, and the fact of being forced to carry water to cover their basic needs of drinking, cooking and hygiene.

Cost of services and willingness to pay for reliable urban water supply: a study from Delhi, India

2005 ◽  
Vol 5 (6) ◽  
pp. 135-144 ◽  
Author(s):  
V. Dutta ◽  
A.P. Tiwari
Keyword(s):  
Willingness To Pay ◽  
Water Supply ◽  
Urban Areas ◽  
Contingent Valuation Method ◽  
Policy Implications ◽  
Capital City ◽  
Urban Water ◽  
Urban Water Supply ◽  
Efficient Manner ◽  
The Cost

The provision of safe and universal water supply in an equitable and efficient manner is extremely important for urban water reform programs currently being carried out in developing countries. The sector reform not only requires a significant amount of working capital, but also people's willingness to pay for the improved infrastructure. This paper serves two purposes – first, it explains the meaning of ‘full-cost of water services’ in urban areas and attempts to provide a framework to value economic and environmental externalities for the urban water supply and use through a case study of India's capital city – Delhi. The second part uses contingent valuation method to establish people's willingness to pay from a survey of 1,100 households for water supply with better quality and reliability. Policy implications are subsequently discussed, keeping in mind cost of provision of water supplies. Also included is the assessment of the cost of unreliable supply (coping cost), which otherwise households are spending in the absence of a reliable supply. The paper shows several instances of reciprocal externality wherein the residents themselves absorb the cost of over-extraction, in terms of declining water tables, and cost of salinity in terms of decentralised treatment cost.

Valuation of community forestry in Ethiopia: a contingent valuation study of rural households

2000 ◽  
Vol 5 (3) ◽  
pp. 289-308 ◽  
Author(s):  
ALEMU MEKONNEN
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation ◽  
Community Forestry ◽  
Contingent Valuation Method ◽  
Sample Selection ◽  
Household Head ◽  
Empirical Literature ◽  
Contingent Valuation Study ◽  
Valuation Method ◽  
The Government

Community forestry projects in Ethiopia have been implemented using the top–down approach, which may have contributed to the failure of most of these projects. The so-called community plantations practically belonged to the government and the labour contribution of the local communities in the establishment of the plantations was mainly in exchange for wages. In this paper, we use the contingent valuation method to examine the determinants of the value of community forestry in rural Ethiopia and its feasibility, when the plantations are established, managed, and used by the communities themselves. The value elicitation format used is discrete question with open-ended follow-up which is closer to the market scenario our respondents are familiar with compared, for example, with the single discrete choice format. Unlike most other studies, we use a tobit model with sample selection in the empirical analysis of the bid function to correct for the effect of excluding invalid responses (protest zeros, outliers and missing bids) from the analysis. The analysis of the bid function shows that household size, household income, distance of homestead to proposed place of plantation, number of trees owned and sex of household head are significant variables that explain willingness to pay. We also find that there are significant differences in willingness-to-pay across sites. It is hoped that this study contributes to the limited empirical literature on community forestry in developing countries by indicating some of the conditions under which community plantations will be acceptable and feasible.

Determination of Willingness to Pay for Improved Water Supply in Selected Areas of Lahore

2018 ◽  
Vol 06 (02) ◽  
pp. 1850013 ◽  
Author(s):  
Sana AKHTAR ◽  
Sarah DEAN ◽  
Faiza ANJUM ◽  
Maryam JAVED
Keyword(s):  
Willingness To Pay ◽  
Water Supply ◽  
Contingent Valuation Method ◽  
Pearson Correlation ◽  
Waterborne Diseases ◽  
Chi Square ◽  
Valuation Method ◽  
Quality Of Water ◽  
Relationship Of

Water scarcity is an alarming issue in the developing world. Due to population explosion, the supply of water to households is becoming difficult. And as the quality of water supply infrastructure is deteriorating, clean water is getting mixed with sewage and becoming a cause of waterborne diseases. This study was carried out in the city of Lahore, Pakistan, to find out the willingness to pay (WTP) for improved water supply by using Contingent Valuation Method (CVM). This study explores the relationship of WTP with socio-economic factors, i.e. income, accommodation and employment. Moreover, questionnaires were administered to randomly selected 200 respondents. For statistical analysis stepwise linear regression, Pearson correlation and chi square were employed to find out the variables that determine WTP for improved water supply quality. Results showed that income was the variable that most significantly impacted the WTP for improved water supply. The WTP amount was found to be 0.70 USD. People were not generally satisfied with the water supply quality. Unavailability of water for 1–2[Formula: see text]h per day was commonly reported by the respondents. However, more studies should be conducted with a larger sample size to enhance our knowledge about water supply situation in Lahore.

scholarly journals Lutte contre la dégradation des terres agricoles dans le département du Couffo au Bénin

2020 ◽  
Vol 14 (6) ◽  
pp. 2147-2159
Author(s):  
Alfred Bothé Kpadé Dossa
Keyword(s):  
Land Degradation ◽  
Agricultural Land ◽  
Contingent Valuation Method ◽  
Sample Selection ◽  
Probit Model ◽  
Sample Selection Bias ◽  
Step Method ◽  
Poor Countries ◽  
Valuation Method ◽  
Agricultural Yields

La dégradation des terres, causée par l’action des eaux et du vent, renforcée par les activités humaines, réduit le rendement et les revenus agricoles et fait baisser la croissance économique notamment dans les pays pauvres comme le Bénin. L’objectif de cette recherche était d’estimer le financement du programme de lutte contre la dégradation des terres dans le département du Couffo, au Sud-Ouest du Bénin. La méthode d’évaluation contingente (MEC) a permis d’obtenir le consentement à payer (CAP) des ménages à l’aide du modèle probit. Ensuite le modèle tobit (Tobin, 1958) est testé par la méthode à deux étapes de Heckman (1979) pour contrôler le biais de sélection de l’échantillon de 267 ménages. Les résultats de l’estimation donnent un CAP moyen de 1557 FCFA / mois / hectare. Pour une campagne agricole de 201 739 hectares en 2019, le CAP total est évalué à 3 769 291 476 FCFA/an. Ce montant permettra de lutter contre la dégradation des terres agricoles dans le Couffo au Bénin.Mots clés : Dégradation des terres, modèle de sélection, Couffo, Bénin. English Title: Fighting against agricultural land degradation in the Couffo division in BeninLand degradation, caused by the action of water and wind, reinforced by human activities, reduces agricultural yields and incomes and lowers economic growth, especially in poor countries like Benin. The objective of this research was to estimate the funding of the program to combat land degradation in the division of Couffo, in the southwest of Benin. The contingent valuation method (CVM) obtained households' willingness to pay (WTP) using the probit model. Then the tobit (Tobin, 1958) model is tested by Heckman's two-step method (Heckman, 1979) to control the sample selection bias of 267 households. The results of the estimate give an average WTP of 1,557 FCFA / month / hectare. For an agricultural campaign of 201,739 hectares in 2019, the total WTP is estimated at 3,769,291,476 FCFA / year. This amount will help combat the degradation of agricultural land in Couffo, Benin.Keywords: Land degradation, selection model, Couffo, Benin.

scholarly journals Investigating Willingness to Pay to Improve Water Supply Services: Application of Contingent Valuation Method

Water ◽  
2015 ◽  
Vol 7 (12) ◽  
pp. 3024-3039 ◽  
Author(s):  
Kamshat Tussupova ◽  
Ronny Berndtsson ◽  
Torleif Bramryd ◽  
Raikhan Beisenova
Keyword(s):  
Willingness To Pay ◽  
Water Supply ◽  
Contingent Valuation ◽  
Contingent Valuation Method ◽  
Valuation Method ◽  
Water Supply Services

Measuring willingness to pay for improved urban water supply in Offa City, Kwara State, Nigeria

2010 ◽  
Vol 10 (6) ◽  
pp. 933-941
Author(s):  
B. F. Sule ◽  
O. G. Okeola
Keyword(s):  
Willingness To Pay ◽  
Water Supply ◽  
Econometric Model ◽  
Social Benefit ◽  
Level Of Service ◽  
Urban Water ◽  
Urban Water Supply ◽  
The Mean ◽  
The City ◽  
Private Sector Involvement

This paper is a study on financial sustainability of water supply service to the city of Offa, in Kwara State, Nigeria. The value consumers place on water supply and the willingness-to-pay (WTP) for improved service and the factors that influence their preferences were determined using an econometric model. The WTP was estimated using a double-bounded dichotomous model and the mean WTP was found to be 70% higher than the current tariff, while the expected monthly revenue from domestic customers alone was 21 million ($175,000)1. The study revealed that the consumers were not satisfied with the level of service but they were willing to pay for improved service and even support reforms that will bring about this change. The mean WTP in practical terms gives social benefit of a policy for the offered service for the affected population. The study outcome shows that the high WTP is a good incentive for private sector involvement in the management of urban water supply.

scholarly journals Willingness to Pay for Hunting Leases in Alabama

2004 ◽  
Vol 28 (1) ◽  
pp. 21-27 ◽  
Author(s):  
Daowei Zhang ◽  
Anwar Hussain ◽  
James B. Armstrong
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation ◽  
Selection Bias ◽  
Household Income ◽  
Sample Selection ◽  
Sample Selection Bias ◽  
Marginal Effect ◽  
Dichotomous Choice ◽  
Hunting Leases

Abstract This study used a censored probit approach to estimate willingness to pay (WTP) for hunting leases in Alabama. Data were generated through a dichotomous choice contingent valuation (DCCV) survey conducted in spring 2002. After correcting for sample selection bias, we found that hunting experience, hunter's household income, number of dependents, and lack of game quality had significant impact on WTP, with lack of game quality having the largest marginal effect. The estimated WTP was $1.29/ac per hunter or $23/ac per hunting club, more than double the actual average payment of $0.52/ac per hunter or $9.36/ac per hunting club. These results suggested that landowners in Alabama could increase access fees for hunting leases. South. J. Appl. For. 28(1):21–27.

scholarly journals A general model for treatment of protests and no-answer responses in contingent valuation method

2017 ◽  
Vol 8 (2) ◽  
pp. 38-49
Author(s):  
Pei-Ing Wu ◽  
Szu-Hao Chen ◽  
Je-Liang Liou
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation ◽  
General Model ◽  
Contingent Valuation Method ◽  
Full Information ◽  
Traditional Treatment ◽  
Valuation Method ◽  
Different Types ◽  
Protest Responses

This study formulates a general model to account for the protest responses and no-answer replies. The distinct characteristics of this model are general in three ways: simultaneously accounting for protest and no-answer responses, applicable to all kinds of elicitation formats in contingent valuation, and simplicity in estimation. Creation of inverse Mills ratio is the distinctive step in this general model. The inverse Mills ratio is continuously carried in the subsequent estimation for the modification of different types of elicitation formats in this general model. The results generally indicate that these ratios are significantly different from zero. This means that accounting for these Mills ratios does have an important role in such modification when protest responses and/or no-answer responses are both taken into account. The results show that overall total willingness to pay from the general model with inclusion of protest and no-answer responses under different types of elicitation formats are higher than those estimated by traditional treatment. The degree of underestimation of traditional treatment is between 26% and 67%. That is, the general model proposed here for treating protest and/or no-answer responses in contingent valuation method can account for the full information, which might be potentially omitted or inappropriately dealt with in the estimation.

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