Advanced Search
MyIDEAS: Login to save this article or follow this journal

Heterogeneous users and willingness to pay in an ongoing payment for watershed protection initiative in the Colombian Andes

Contents:

Author Info

  • Moreno-Sanchez, Rocio
  • Maldonado, Jorge Higinio
  • Wunder, Sven
  • Borda-Almanza, Carlos

Abstract

Flat fees in payment for environmental services (PES) schemes promote administrative ease, and are perceived as egalitarian. However, when environmental-service (ES) buyers are heterogeneous in their income and water-consumption levels, this scheme may not be optimal, as total payments might become too low and services under-supplied. This paper estimates willingness to pay (WTP) higher fees from hydrological-service buyers in an ongoing PES initiative in an Andean watershed in Colombia, where small, flat user payments have been introduced. ES users fall into two highly heterogeneous categories: smallholder peasants and recreational-house owners. We perform a contingent valuation analysis in a representative sample of 218 households. For improved water services, ES buyers on average are willing to pay monthly about US$1 premium over current flat PES rate. Users’ heterogeneity, however, affects significantly this outcome: while recreational-house owners are willing to pay monthly on average US$1.61 more than the current fee, smallholders only US$0.41. Spatial variables, such as distance to the water distribution point and to the town center, importantly influence WTP. Results may help designing user-driven PES schemes in line with efficiency and equity objectives.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/pii/S0921800912000110
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 75 (2012)
Issue (Month): C ()
Pages: 126-134

as in new window
Handle: RePEc:eee:ecolec:v:75:y:2012:i:c:p:126-134

Contact details of provider:
Web page: http://www.elsevier.com/locate/ecolecon

Related research

Keywords: Payment for environmental services; Willingness to pay; Environmental services; Hydrological services; Colombia; Watershed protection; Heterogeneous consumers;

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Marcella Veronesi & Fabienne Chawla & Max Maurer & Judit Lienert, 2013. "Climate Change and the Willingness to Pay to Reduce Ecological and Health Risks from Wastewater Flooding in Urban Centers and the Environment," Working Papers 01/2013, University of Verona, Department of Economics.
  2. Yaella Depietri & Lorenzo Guadagno & Margaretha Breil, 2013. "Urban Watershed Services For Improved Ecosystem Management and Risk Reduction, Assessment Methods and Policy Instruments: State of the Art," Working Papers 2013.101, Fondazione Eni Enrico Mattei.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:75:y:2012:i:c:p:126-134. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.