Abstract:This study uses an iterative bidding approach to examine the relationship between selected socioeconomic characteristics of households and their willingness to pay for water. The study uses survey data from selected villages in Ghana. The results show that household income is the principal factor influencing the willingness to pay for water. There was a statistically significant positive relationship between households' history of water‐related illness and their willingness to pay for water. The effect of most… Show more
“…There have been relatively few published studies on contingent valuation in developing countries. Those that exist have focused on the demand in poor countries for education (Thobani, 1983;Mingat and Tan, 1986;Jimenez, 1987), health services (Jimenez, 1987), sanitation services (Whittington , Lauria and Wright, 1993;Altaf and Hughes, 1994), and rural water supplies (Boadu, 1992;Singh et al, 1993;Altaf et al, 1993;Bohm, Essenburg, and Fox, 1993). In addition, the World Bank initiated a multicountry study of the willingness-to-pay for potable water in 1987, which resulted in several contingent valuation analyses (Whittington et al, 1990(Whittington et al, , 1991Briscoe et al, 1990;Griffen et al, 1995).…”
Section: Comparison With Similar Studiesmentioning
Mangrove ecosystems provide a wide range of market and non-market benefits to coastal communities in the developing world, yet they remain undervalued and overexploited in most regions where they are found. This paper analyzes the use and value of mangroves in Kosrae, Micronesia, where the population is largely dependent on the swamps for fuelwood and other ecosystem services, such as erosion control, storm protection, and nutrient flows to shoreline fisheries. The results show that mangroves on the island are worth between $666 thousand and $1 million per year (1996 prices) based on the net value of marketable products alone. In addition, household survey data suggest that the local people are willing to pay between $1 million and $1.26 million per year to protect and use mangrove swamps indefinitely. The results thus indicate that the population places some premium on the existence and indirect ecosystem services of mangroves, over and above the direct use values. Moreover, respondents generally favored—and were willing to pay more for—a tax system designed to manage and preserve the mangroves' direct and indirect services over a permit system focused only the allocation of direct use over time. Valuation analyses using revealed preference and contingent valuation methods lead to additional conclusions regarding the distribution of benefits, with poor households deriving more direct benefits from—but willing to pay less to protect—mangrove ecosystems.
“…There have been relatively few published studies on contingent valuation in developing countries. Those that exist have focused on the demand in poor countries for education (Thobani, 1983;Mingat and Tan, 1986;Jimenez, 1987), health services (Jimenez, 1987), sanitation services (Whittington , Lauria and Wright, 1993;Altaf and Hughes, 1994), and rural water supplies (Boadu, 1992;Singh et al, 1993;Altaf et al, 1993;Bohm, Essenburg, and Fox, 1993). In addition, the World Bank initiated a multicountry study of the willingness-to-pay for potable water in 1987, which resulted in several contingent valuation analyses (Whittington et al, 1990(Whittington et al, , 1991Briscoe et al, 1990;Griffen et al, 1995).…”
Section: Comparison With Similar Studiesmentioning
Mangrove ecosystems provide a wide range of market and non-market benefits to coastal communities in the developing world, yet they remain undervalued and overexploited in most regions where they are found. This paper analyzes the use and value of mangroves in Kosrae, Micronesia, where the population is largely dependent on the swamps for fuelwood and other ecosystem services, such as erosion control, storm protection, and nutrient flows to shoreline fisheries. The results show that mangroves on the island are worth between $666 thousand and $1 million per year (1996 prices) based on the net value of marketable products alone. In addition, household survey data suggest that the local people are willing to pay between $1 million and $1.26 million per year to protect and use mangrove swamps indefinitely. The results thus indicate that the population places some premium on the existence and indirect ecosystem services of mangroves, over and above the direct use values. Moreover, respondents generally favored—and were willing to pay more for—a tax system designed to manage and preserve the mangroves' direct and indirect services over a permit system focused only the allocation of direct use over time. Valuation analyses using revealed preference and contingent valuation methods lead to additional conclusions regarding the distribution of benefits, with poor households deriving more direct benefits from—but willing to pay less to protect—mangrove ecosystems.
“…The researchers concluded that households' WTP for water system is not dependent on anyone set of factors but rather on their joint effects and on specific cultural setting. Boadu [8] examined the relationship between WTP for water and selected socioeconomic characteristics using data from selected villages in Ghana and obtained a positive relationship between household history of water related illness and the WTP for water services. The other socioeconomic factors effect did not follow any consistent pattern and therefore broad generalisations were not possible.…”
A major problem confronting the Accra-Tema Metropolitan area of Ghana is the provision of potable water supply. One reason for this occurrence is the inability of Ghana Water Company Limited to meet the growing demand. This can partly be attributable to the ineffective pricing by the PURC which is below cost recovery levels. In this study we investigate household's willingness-to-pay (WTP) for potable water supply together with the factors that determine WTP by using the Contingent Valuation Method (CVM). The results indicate that households in the Accra-Tema metropolis are willing to pay on the average GH¢0.10 for a bucket (17.5 litres) of water which is about 7 times more than what they are paying currently. Analysis of the factors that influence households WTP indicates that income, time spent to fetch water from existing sources, level of education, sanitation facility, perceived quality of current water supply, sex of the respondent and marital status are the main factors influencing households WTP for potable water supply services in the metropolis. We recommend that government improve water supply and increase tariffs since people are prepared to pay more for potable water supply as well as reduce inefficiencies that exist in the sector.
“…It has been argued that older people care more about future generations or that they are more conscious about health issues, implying a positive impact of age on the WTP (Muhammad et al, 2015;Brouwer et al, 2016). Others argue that younger people are more conscious about environmental issues, implying a negative impact on the WTP (Boadu, 1992; terms of use, available at https://www.cambridge.org/core/terms. https://doi.org/10.1017/S1355770X16000255 Belluzzo, 2004;O'Garra and Mourato, 2006;Shultz and Soliz, 2007;Alpízar and Madrigal, 2016).…”
Section: Resultsmentioning
confidence: 99%
“…https://doi.org/10.1017/S1355770X16000255 Belluzzo, 2004;O'Garra and Mourato, 2006;Shultz and Soliz, 2007;Alpízar and Madrigal, 2016). Similarly, some authors suggest that the higher the household's size the lower the WTP, since there are more competitive uses for the family income (Boadu, 1992;Amponin et al, 2007). Nevertheless, others authors argue that the presence of children at home would increase the WTP (Shultz and Soliz, 2007).…”
ABSTRACT. Stated preference approaches, such as contingent valuation, focus mainly on the estimation of the mean or median willingness to pay (WTP) for an environmental good. Nevertheless, these two welfare measures may not be appropriate when there are social and political concerns associated with implementing a payment for environmental services (PES) scheme. In this paper the authors used a Bayesian estimation approach to estimate a quantile binary regression and the WTP distribution in the context of a contingent valuation PES application. Our results show that the use of other quantiles framed in the supermajority concept provides a reasonable interpretation of the technical nonmarket valuation studies in the PES area. We found that the values of the mean WTP are 10-37 times higher than the value that would support a supermajority of 70 per cent of the population.
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