IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v75y2012icp126-134.html
   My bibliography  Save this article

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

Author

Listed:
  • 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.

Suggested Citation

  • Moreno-Sanchez, Rocio & Maldonado, Jorge Higinio & Wunder, Sven & Borda-Almanza, Carlos, 2012. "Heterogeneous users and willingness to pay in an ongoing payment for watershed protection initiative in the Colombian Andes," Ecological Economics, Elsevier, vol. 75(C), pages 126-134.
    • Handle: RePEc:eee:ecolec:v:75:y:2012:i:c:p:126-134
    DOI: 10.1016/j.ecolecon.2012.01.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800912000110
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ecolecon.2012.01.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Whittington, Dale, 1998. "Administering contingent valuation surveys in developing countries," World Development, Elsevier, vol. 26(1), pages 21-30, January.
    2. Wunder, Sven & Albán, Montserrat, 2008. "Decentralized payments for environmental services: The cases of Pimampiro and PROFAFOR in Ecuador," Ecological Economics, Elsevier, vol. 65(4), pages 685-698, May.
    3. Paul J. Ferraro & R. David Simpson, 2002. "The Cost-Effectiveness of Conservation Payments," Land Economics, University of Wisconsin Press, vol. 78(3), pages 339-353.
    4. Whittington, Dale & Lauria, Donald T. & Mu, Xinming, 1991. "A study of water vending and willingness to pay for water in Onitsha, Nigeria," World Development, Elsevier, vol. 19(2-3), pages 179-198.
    5. Dale Whittington & Stefano Pagiola, 2012. "Using Contingent Valuation in the Design of Payments for Environmental Services Mechanisms: A Review and Assessment," The World Bank Research Observer, World Bank, vol. 27(2), pages 261-287, August.
    6. Pagiola, Stefano, 2008. "Payments for environmental services in Costa Rica," Ecological Economics, Elsevier, vol. 65(4), pages 712-724, May.
    7. Richard Carson & Theodore Groves, 2007. "Incentive and informational properties of preference questions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 181-210, May.
    8. repec:idb:brikps:22398 is not listed on IDEAS
    9. Johnson, Nancy L. & Baltodano, Maria Eugenia, 2004. "The economics of community watershed management: some evidence from Nicaragua," Ecological Economics, Elsevier, vol. 49(1), pages 57-71, May.
    10. Asquith, Nigel M. & Vargas, Maria Teresa & Wunder, Sven, 2008. "Selling two environmental services: In-kind payments for bird habitat and watershed protection in Los Negros, Bolivia," Ecological Economics, Elsevier, vol. 65(4), pages 675-684, May.
    11. Whittington, Dale & Briscoe, John & Mu, Xinming & Barron, William, 1990. "Estimating the Willingness to Pay for Water Services in Developing Countries: A Case Study of the Use of Contingent Valuation Surveys in Southern Haiti," Economic Development and Cultural Change, University of Chicago Press, vol. 38(2), pages 293-311, January.
    12. Timothy C. Haab & Kenneth E. McConnell, 2002. "Valuing Environmental and Natural Resources," Books, Edward Elgar Publishing, number 2427.
    13. Briscoe, John, et al, 1990. "Toward Equitable and Sustainable Rural Water Supplies: A Contingent Valuation Study in Brazil," The World Bank Economic Review, World Bank, vol. 4(2), pages 115-134, May.
    14. Wünscher, Tobias & Engel, Stefanie & Wunder, Sven, 2008. "Spatial targeting of payments for environmental services: A tool for boosting conservation benefits," Ecological Economics, Elsevier, vol. 65(4), pages 822-833, May.
    15. V. Ratna Reddy, 1999. "Quenching the Thirst: The Cost of Water in Fragile Environments," Development and Change, International Institute of Social Studies, vol. 30(1), pages 79-113, January.
    16. Clifford S. Russell & William J. Vaughan & Christopher D. Clark & Diego J. Rodríguez & Arthur H. Darling, 2001. "Investing in Water Quality: Measuring Benefits, Costs and Risks," IDB Publications (Books), Inter-American Development Bank, number 22398, February.
    17. John P. Hoehn & Douglas J. Krieger, 2000. "An Economic Analysis of Water and Wastewater Investments in Cairo, Egypt," Evaluation Review, , vol. 24(6), pages 579-608, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Kai Xiong & Fanbin Kong & Ning Zhang & Ni Lei & Chuanwang Sun, 2018. "Analysis of the Factors Influencing Willingness to Pay and Payout Level for Ecological Environment Improvement of the Ganjiang River Basin," Sustainability, MDPI, vol. 10(7), pages 1-17, June.
    2. Namhee Kim & Miju Kim & Sangkwon Lee & Chi-Ok Oh, 2023. "Comparing Stakeholders’ Economic Values for the Institution of Payments for Ecosystem Services in Protected Areas," Land, MDPI, vol. 12(7), pages 1-17, July.
    3. Chu, Long & Quentin Grafton, R. & Keenan, Rodney, 2019. "Increasing Conservation Efficiency While Maintaining Distributive Goals With the Payment for Environmental Services," Ecological Economics, Elsevier, vol. 156(C), pages 202-210.
    4. Shoyama, Kikuko & Yamagata, Yoshiki, 2016. "Local perception of ecosystem service bundles in the Kushiro watershed, Northern Japan – Application of a public participation GIS tool," Ecosystem Services, Elsevier, vol. 22(PA), pages 139-149.
    5. Barano Siswa Sulistyawan & Budy P. Resosudarmo & Rene W. Verburg & Pita Verweij & Mia Amalia & Marija Bockarjova, 2022. "Economic valuation of water services related to protected forest management: a case of Bukit Batabuh in the RIMBA corridor, Central Sumatra, Indonesia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(7), pages 9330-9354, July.
    6. Gáfaro, Margarita & Mantilla, Cesar, 2021. "Environmental valuation using bargaining games: an application to water," OSF Preprints tcfyb, Center for Open Science.
    7. Rodríguez-Robayo, Karla Juliana & Merino-Perez, Leticia, 2017. "Contextualizing context in the analysis of payment for ecosystem services," Ecosystem Services, Elsevier, vol. 23(C), pages 259-267.
    8. Andrea B. Coulson & Michael O. Rivett & Robert M. Kalin & Sergio M. P. Fernández & Jonathan P. Truslove & Muthi Nhlema & Joseph Maygoya, 2021. "The Cost of a Sustainable Water Supply at Network Kiosks in Peri-Urban Blantyre, Malawi," Sustainability, MDPI, vol. 13(9), pages 1-18, April.
    9. Vargas, Andrés & Díaz, David, 2014. "Community-based conservation programs and local people willingness to pay for wildlife protection: The case of the cotton-top tamarin in the Colombian Caribbean," Revista Lecturas de Economía, Universidad de Antioquia, CIE, issue 81, pages 187-206, April.
    10. Haiyang Shang & Jiaojiao Fan & Bingjie Fan & Fang Su, 2022. "Economic Effects of Ecological Compensation Policy in Shiyang River Basin: Empirical Research Based on DID and RDD Models," Sustainability, MDPI, vol. 14(5), pages 1-28, March.
    11. Cailian Hao & Denghua Yan & Mohammed Gedefaw & Tianling Qin & Hao Wang & Zhilei Yu, 2021. "Accounting of Transboundary Ecocompensation Standards Based on Water Quantity Allocation and Water Quality Control Targets," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 35(6), pages 1731-1756, April.
    12. Li, Guifang & Shi, Minjun & Zhou, Dingyang, 2021. "How much will farmers be compensated for water reallocation from agricultural water to the local ecological sector on the edge of an oasis in the Heihe River Basin?," Agricultural Water Management, Elsevier, vol. 249(C).
    13. Abigail Barr & Trudy Owens & Ashira Perera, 2017. "Collective action when public good returns are heterogeneous," Discussion Papers 2017-05, University of Nottingham, CREDIT.
    14. Gordillo, Fernando & Elsasser, Peter & Günter, Sven, 2019. "Willingness to pay for forest conservation in Ecuador: Results from a nationwide contingent valuation survey in a combined “referendum” – “Consequential open-ended” design," Forest Policy and Economics, Elsevier, vol. 105(C), pages 28-39.
    15. Dulce Rodrigues & Paulo Oliveira & Teodorico Alves Sobrinho & Eduardo Mendiondo, 2013. "Hydrological benefits in the context of Brazilian environmental services program," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 15(4), pages 1037-1048, August.
    16. 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.
    17. Hua Li & Dan Su & Yu Cao & Jiayi Wang & Yu Cao, 2022. "Optimizing the Compensation Standard of Cultivated Land Protection Based on Ecosystem Services in the Hangzhou Bay Area, China," Sustainability, MDPI, vol. 14(4), pages 1-18, February.
    18. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael Kaplowitz & Frank Lupi & Oscar Arreola, 2012. "Local Markets for Payments for Environmental Services: Can Small Rural Communities Self-Finance Watershed Protection?," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(13), pages 3689-3704, October.
    2. Van Houtven, George L. & Pattanayak, Subhrendu K. & Usmani, Faraz & Yang, Jui-Chen, 2017. "What are Households Willing to Pay for Improved Water Access? Results from a Meta-Analysis," Ecological Economics, Elsevier, vol. 136(C), pages 126-135.
    3. Ojeda, Monica Ilija & Mayer, Alex S. & Solomon, Barry D., 2008. "Economic valuation of environmental services sustained by water flows in the Yaqui River Delta," Ecological Economics, Elsevier, vol. 65(1), pages 155-166, March.
    4. Anthony Amoah & Peter G. Moffatt, 2017. "Estimating demand for reliable piped-water services in urban Ghana: An application of competing valuation approaches," University of East Anglia School of Economics Working Paper Series 2017-01, School of Economics, University of East Anglia, Norwich, UK..
    5. Colman, David & Pascual, Unai & Hodge, Ian, 2010. "Evolution of Land Conservation Policy," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 188082, International Consortium on Applied Bioeconomy Research (ICABR).
    6. Wunder, Sven & Engel, Stefanie & Pagiola, Stefano, 2008. "Taking stock: A comparative analysis of payments for environmental services programs in developed and developing countries," Ecological Economics, Elsevier, vol. 65(4), pages 834-852, May.
    7. Engel, Stefanie & Pagiola, Stefano & Wunder, Sven, 2008. "Designing payments for environmental services in theory and practice: An overview of the issues," Ecological Economics, Elsevier, vol. 65(4), pages 663-674, May.
    8. Cranford, Matthew & Mourato, Susana, 2014. "Credit-Based Payments for Ecosystem Services: Evidence from a Choice Experiment in Ecuador," World Development, Elsevier, vol. 64(C), pages 503-520.
    9. Gelo, Dambala & Koch, Steven F., 2015. "Contingent valuation of community forestry programs in Ethiopia: Controlling for preference anomalies in double-bounded CVM," Ecological Economics, Elsevier, vol. 114(C), pages 79-89.
    10. Irina Klytchnikova & Michael Lokshin, 2009. "Measuring Welfare Gains from Better Quality Infrastructure," Journal of Infrastructure Development, India Development Foundation, vol. 1(2), pages 87-109, December.
    11. Börner, Jan & Baylis, Kathy & Corbera, Esteve & Ezzine-de-Blas, Driss & Honey-Rosés, Jordi & Persson, U. Martin & Wunder, Sven, 2017. "The Effectiveness of Payments for Environmental Services," World Development, Elsevier, vol. 96(C), pages 359-374.
    12. MEZGEBO, Alem & GETA, Endrias & ZELEKE, Fresenbet, 2016. "Urban Freshwater Users Willingness To Pay For Upland Degraded Watershed Management: The Case Of Dechatu In Dire Dawa Administration, Ethiopia," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 19(1), pages 1-8, March.
    13. Schomers, Sarah & Matzdorf, Bettina, 2013. "Payments for ecosystem services: A review and comparison of developing and industrialized countries," Ecosystem Services, Elsevier, vol. 6(C), pages 16-30.
    14. Rodríguez, Luis C. & Pascual, Unai & Muradian, Roldan & Pazmino, Nathalie & Whitten, Stuart, 2011. "Towards a unified scheme for environmental and social protection: Learning from PES and CCT experiences in developing countries," Ecological Economics, Elsevier, vol. 70(11), pages 2163-2174, September.
    15. Anthony Amoah & Peter G. Moffatt, 2021. "Willingness to pay for reliable piped water services: evidence from urban Ghana," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(4), pages 805-829, October.
    16. Zapata, Samuel D. & Benavides, Holger M. & Carpio, Carlos E. & Willis, David B., 2009. "The Economic Value of Basin Protection to Improve the Quality and Reliability of Potable Water Supply: Some Evidence from Ecuador," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46773, Southern Agricultural Economics Association.
    17. Fisher, Brendan & Kulindwa, Kassim & Mwanyoka, Iddi & Turner, R. Kerry & Burgess, Neil D., 2010. "Common pool resource management and PES: Lessons and constraints for water PES in Tanzania," Ecological Economics, Elsevier, vol. 69(6), pages 1253-1261, April.
    18. Mvangeli Dlamini, Nqobizwe, 2015. "Households' Water Use Demand and Willingness to Pay for Improved Water Services: A Case Study of Semi-Urban Areas in the Lubombo and Lowveld Regions of Swaziland," Research Theses 243464, Collaborative Masters Program in Agricultural and Applied Economics.
    19. Ma, Zhao & Bauchet, Jonathan & Steele, Diana & Godoy, Ricardo & Radel, Claudia & Zanotti, Laura, 2017. "Comparison of Direct Transfers for Human Capital Development and Environmental Conservation," World Development, Elsevier, vol. 99(C), pages 498-517.
    20. John P. Hoehn & Douglas J. Krieger, 2000. "An Economic Analysis of Water and Wastewater Investments in Cairo, Egypt," Evaluation Review, , vol. 24(6), pages 579-608, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.