• editor.aipublications@gmail.com
  • Track Your Paper
  • Contact Us
  • ISSN: 2456-8678

International Journal Of Rural Development, Environment And Health Research(IJREH)

Determinants of Households Willingness to Pay for Conservation of Natural Kool Water (Burie Kool Wuha, W/Gojjam, Ethiopia)

Mulugeta Bekele , Paulos Asrat

International Journal of Rural Development, Environment and Health Research(IJREH), Vol-4,Issue3, May - June 2020, Pages 67-83, 10.22161/ijreh.4.3.2

Download | Downloads : 6 | Total View : 712


Most natural resources or environmental goods and services are exposed to degradation, society over utilize them for only their current benefits without thinking the future life span of these resources. The study analyzed determinants of households’ willingness to pay for conservation of natural Kool water (Burie Kool Wuha, W/Gojjam, Ethiopia). The contingent valuation method and Heckman two step model was employed. The results indicates that sex of the household head, education of the household, value attached to the resource by households as source of income, value attached to the resource by households reserving for future generation and wealth of the households has a significant and positive correlation with households WTP, and family size of households, education of the household and wealth of the households has a significant and positive correlation with the households payment levels. On the other hand, initial bid value has a negative correlation with the level of payments. Therefore, by taking the importance of the resource for the society and the households WTP, the policy makers need to focus on identified factors in designing strategies for the conservation of the resource.

Burie Kool Wuha; Conservation; CVM; Heckman two step model; Ethiopia.

[1] Adamu, A., Yacob, M. R., Radam, A., & Hashim, R. (2015). Factors Determining Visitors’ Willingness to Pay for Conservation in Yankari Game Reserve, Bauchi, Nigeria. International Journal of Economics and Management, IV(s), 95-114.
[2] Adger, W. N., Arnell, N. W., & Tompkins, E. L. (2015). Successful adaptation to climate change across scales. Global Environmental Change(15), 77–86.
[3] Alebe, B. (2003). Analyses of affordability and willingness to pay for improved water supply in urban areas of Ethiopia: strategy for full cost recovery. MSc Thesis , Addis Ababa University, , Addis Ababa, Ethiopia.
[4] Aschalew, D. (2009). Determinants of Household Participation in Water Source Management: Achefer, Amhara Region, Ethiopia . New Yourk, USA: Faculty of the Graduate School of Cornell University .
[5] Asrat, P., Belay, K., & Hamito, D. (2004). Determinants of Farmers’ Willingness to Pay for Soil Conservation Practices in the Southeastern Highlands of Ethiopia. Land Degradation & Development, XV(6), 423-438. Retrieved from https://doi.org/10.1002/ldr.623
[6] Bateman, I. J., & Turner, R. K. (2016). Evaluation of the Environment: The Contingent Valuation Method. London: he Centre for Social and Economic Research on The Global Environment.
[7] Bekele, A. S., Okello, J., & Reddy, R. V. (2007). Adoption and adaptation of natural resource management innovations in smallholder agriculture: reflections on key lessons and best practices. Environment, Development and Sustainability, XI(3), 601-619.
[8] Belay, K. (2015). Farmers’ Willingness to Pay for Improved Soil Conservation Practices in Kuyu Woreda, North Shoa Zone of Oromia, Ethiopia: Application of Contingent Valuation Method. Singaporean Journal of Business Economics, and Management Studies, V(12), 39-48.
[9] Berhan, A., Beyene, B., Tessema, M., Kara, A., Goshu, B., & Assefa, A. (2016). Estimating Willingness to Pay for Labeobarbus Fish Species Conservation in Lake Tana, Ethiopia: A Contengent Valution Study. International Journal of Natural Resource Ecology and Managment, I(4), 155-161.
[10] Biniyam, T. (2013). Valuing the Economic Benefits of Controlling Off-Site Effects of Soil Erosion. MSc Thesis, Addis Ababa University, School of Economics, Addis Ababa.
[11] Calow, R., Bonsor, H., Jones, L., O’Meally, S., MacDonald, A., & Kaur, N. (2011). Climate change, water resources and WASH. London: Overseas Development Institute.
[12] Carson, R. T., Flores, N. E., & Mitchell, R. C. (1999). The Theory and Measurement of Passive‐Use Value:Theory and Practice of the Contingent Valuation Method in the USA, EC, and Developing Countries. New York: Oxford UniversityPress.doi:10.1093/0199248915.003.0004
[13] Ciriacy-Wantrup, S. V. (1947). Capital Returns from Soil-Conservation Practices . Journal of Farm Economics, XXIX(4), 1181-1196.
[14] Daniel, A., & Mulugeta, N. (2017). Factors affecting adoption of soil and water conservation practices: The case of Wereillu Woreda (District), South Wollo Zone, Amhara Region, Ethiopia. International Soil and Water Conservation Research, V(4), 273-279.
[15] Dixon, J. A. (2008). Environmental Valuation: Challenges and Practices. Economics and Conservation in the Tropics.
[16] Donella H. Meadows, D. L. (1972). The Limits to Growth: A Report for the Club of Rome's Project on the Predicament of Mankind. New York: Universe Books.
[17] Environmental Protection Authority . (2010). Victoria Annual Report . Victoria: EPA Victoria.
[18] Food and Agriculture Organization of the United Nations (FAO). (2014). FAO Submission to the UNFCCC- Executive Committee of the Warsaw International Mechanism for Loss and Damage. FAO.
[19] Gujarati, D. N. (2002). Basic Econometrics (4th ed.). Boston: McGraw Hill.
[20] Hackett, S. C. (2006). Environmental and Natural Resources Economics: Theory, Policy, and the Sustainable Society (3rd ed.). London, England: M.E. Sharpe, Inc.
[21] Hanley, Shogren, N., Janson, & Ben. (1997). Environmental Economics in Theory and Practice. London: Macmillan Press Limited.
[22] International Centre for Integrated Mountain Development. (2016). Springs, Storage Towers, and Water Conservation in the Midhills of Nepal. Kathmandu, Nepal: International Centre for Integrated Mountain Development.
[23] International Federation of Red Cross and Red Crescent Societies Red Cross / Red Crescent Climate Centre and ProVention Consortium in collaboration. (2009). Climate Change Adaptation Strategies for Local Impact. Technical Paper for the IASC Task Force on Climate Change. Retrieved 03 02, 2017, from https://unfccc.int/resource/docs/2009/smsn/igo/054.pdf
[24] Johansson, P.-O. (2010). The Economic Theory and Measurement of Environmental Benefits. Cambridge: Cambridge University Press.
[25] Kaliba, A. R., Norman, D. W., & Chang, Y.-M. (2002). Willingness to pay to improve domestic water supply in rural areas of Central Tanzania: Implications for policy. International Journal of Sustainable Development & World Ecology, X(2), 119-132. doi: DOI: 10.1080/13504500309469791
[26] Kong, F., Xiong, K., & Zhang, N. (2014). Determinants of Farmers’ Willingness to Pay and Its Level for Ecological Compensation of Poyang Lake Wetland. Institute of Poyang Lake Eco-economics, Jiangxi University of Finance and Economics.
[27] Kong, F., Xiong, K., & Zhang, N. (2014). Determinants of Farmers’ Willingness to Pay and Its Level for Ecological Compensation of Poyang Lake Wetland, China: A Household-Level Survey. Sustainability, MDPI, Open Access Journal, VI(10), 1-15.
[28] Krutilla, J. V. (1967). Conservation Reconcidered. The American Economic Review, XXIX(4), 777-786.
[29] Maddala, G. (2002). Introduction to Econometrics (3rd ed.). New York: Macmillan.
[30] Manlosa, A. O., Briones, N. D., Alcantara, A. J., & Florece, L. M. (2013). Willingness to Pay for Conserving Layawan Watershed for Domestic Water Supply in Oroquieta City, Philippines. Journal of Environmental Science and Management, XVI(2), 1-10.
[31] Mesfin, T., Mathijs, E., Muys, B., Vranken, L., & Deckers, J. (2011). Contingent Valuation Analysis of Rural Households’ Willingness to Pay for Frankincense Forest Conservation. ETH Zurich, Zurich, Switzerland: EAAE.
[32] Mohamed, N., Shamsudin, M., Ghani, A., Radam, A., Kaffashi, S., Rahim, N., & Hassin, N. B. (2012). Willingness to Pay for Watershed Conservation at Hulu Langat, Selangor. Journal of Applied Sciences, 1859-1864.
[33] Negassa, F. (2014). Estimating the Value for Conservation of Wonchi Crater Lake (Application of Contingent Valuation Method). MSc Thesis, Addis Ababa University , Department of Economics, Addis Ababa, Ethiopia.
[34] Nigiste, A. (2015). Assessing the Economic Value of Protecting Lakes in Bishoftu Town: The Case of Lake Babogaya and Lake Kuriftu. MSc Thesis, Addis Ababa University , Department of Economics, Addis Ababa.
[35] Nuva, R., & Shamsudin, M. N. (2009). Willingness to Pay towards the Conservation of Ecotourism Resources at Gunung Gede Pangrango Nation. Journal of Sustainable Development, II(2), 173-186.
[36] Pearson. (2003). Valuation Approaches in Practice. MSc Thesis, University of Akureyri , Faculty of Business Administration, Akureyri .
[37] Perman, R., Common, M., Maddison, D., & Mcgilvray, J. (2003). Natural Resource and Environmental Economics (3rd ed.). Pearson Education.
[38] Prakash, N. (2017). Household’s Perception of Water Quality and Willingness to Pay for Clean Water. Economies, V(12), 1-14.
[39] Radam., A. (2009). Willingness to Pay towards the Conservation of Ecotourism Resources at Gunung Gede Pangrango National Park. Journal of Sustainable Development .
[40] Sardianou, E. (2015). Household Energy Conservation Patterns: Evidence from Greece. PhD dissertation , Harokopio University , Department of Home Economics and Ecology, Athens.
[41] Shang, Z., Che, Y., Yang, K., & Jiang, Y. (2012). Assessing Local Communities’ Willingness to Pay for RiverNetwork Protection: A Contingent Valuation Study of Shanghai,China. International Journal of Environmental Research and Public Health, I(9), 3866-3888.
[42] Shirkhorshidi, M. (2013). Local Community Perceptions on Natural Resource Governance at Protected Areas: Understanding Factors Critical to the Success of Integrated Conservation and Development. MSc Thesis , Imperial College London, London.
[43] Steinbeck, J. (1939). The Grapes of Wrath. New York: Bantam Books.
[44] Tamirat, M. (2014). Determinants of Households’ Willingness to Pay for Improved Water Supply Services in Dilla Town, Southern Ethiopia: An Application of Contingent Valuation Method. MSc Thesis, Addis Ababa University, School of Economics, Addis Ababa.
[45] Tietenberg, T., & Lewis, L. (2012). Environmental & Natural Resource Economics (9th ed.). Pearson Education, Inc.
[46] Varian, H. (1992). Microeconomics Analysis ( 3rd ed.). Michigan: University of Michigan.
[47] Whittington, D., Pattanayak, S. K., Yang, J.-C., & Kumar, K. B. (2002). Household demand for improved piped water services: evidence from Kathmandu, Nepal. Water Policy, IV(6), 531-556.
[48] Williams, C. H. (1998). The Economic Evaluation of Environmental 'Goods' And 'Bads': A Comparison of Alternative Techniques. Queensland University of Technology , School of Economic and Public Policy, Brisbane, Australia.
[49] World Bank . (2015). Reports on the Value of Natural Resources. New York: The World Bank.
[50] Wubalem, F. (2014). Households’ Demand for Improved Water Supply Service in Rural Areas of Ankasha Woreda, Amhara Regional State in Ethiopia. MSc Thesis, Addis Ababa University, School of Economics, Addis Ababa.
[51] Young, R. A. (2005). Determining the Economic Value of Water: Concepts and Methods. Routledge.