Heterogeneous users and willingness to pay in an ongoing payment for watershed protection initiative in the Colombian Andes
AbstractFlat 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 InfoIf 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.
Bibliographic InfoArticle provided by Elsevier in its journal Ecological Economics.
Volume (Year): 75 (2012)
Issue (Month): C ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/ecolecon
Payment for environmental services; Willingness to pay; Environmental services; Hydrological services; Colombia; Watershed protection; Heterogeneous consumers;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- 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,"
01/2013, University of Verona, Department of Economics.
- Veronesi, Marcella & Chawla, Fabienne & Maurer, Max & Lienert, Judit, 2014. "Climate change and the willingness to pay to reduce ecological and health risks from wastewater flooding in urban centers and the environment," Ecological Economics, Elsevier, vol. 98(C), pages 1-10.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.