IDEAS home Printed from https://ideas.repec.org/a/spr/lsprsc/v15y2022i1d10.1007_s12076-022-00300-0.html
   My bibliography  Save this article

Smallholder households’ willingness to pay for sustainable agricultural water supply in case of North West Ethiopia

Author

Listed:
  • Agerie Nega Wassihun

    (University of Gondar)

  • Yitayew Malede Nega

    (University of Gondar)

  • Wuletaw Mekuria Kebede

    (University of Gondar)

  • Elleni Ewonetu Fenta

    (University of Gondar)

  • Asrat Akele Ayalew

    (University of Gondar)

Abstract

The role of irrigation water pricing as a signal for scarcity and opportunity cost of water plays crucial role in promoting water use efficiency. Therefore, in this study households’ willingness to pay for sustainable agricultural water supply in case of North West Ethiopia was analyzed from October 2019 to December 2020 using 385 sample households selected through systematic random sampling technique. Double bounded dichotomous choice with follow up of open ended format of contingent valuation method were employed. Seemingly unrelated bivariate probit model was used to analyze determinants of households’ probability of willingness to pay. Accordingly, irrigation experience, livestock holding, respondent being male headed, having access to an irrigation input, and having access to market information have positive whereas, age of respondent, distance to market, owning motor pump, rainfall productivity, first and second bid values have negative but statistically significant effect on households’ probability of WTP for sustainable agricultural water supply. The mean WTP of households’ for improved irrigation water supply was estimated 961.68 and 972.66 birr per year/timad (0.25 ha) from double bounded dichotomous choice and open ended format respectively. The aggregate welfare gain of improved irrigation water supply from double bounded dichotomous choice and open ended format was estimated to be 39,068,250 and 39,514,312.5 birr per year respectively. Based on the findings, it is recommended that enhancing farmers’ awareness about resource scarcity and efficient utilization of scarce resource should be prerequisite for effective implementation of sustainable agricultural water charging schemes.

Suggested Citation

  • Agerie Nega Wassihun & Yitayew Malede Nega & Wuletaw Mekuria Kebede & Elleni Ewonetu Fenta & Asrat Akele Ayalew, 2022. "Smallholder households’ willingness to pay for sustainable agricultural water supply in case of North West Ethiopia," Letters in Spatial and Resource Sciences, Springer, vol. 15(1), pages 79-98, April.
    • Handle: RePEc:spr:lsprsc:v:15:y:2022:i:1:d:10.1007_s12076-022-00300-0
    DOI: 10.1007/s12076-022-00300-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12076-022-00300-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12076-022-00300-0?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. Emine Ikıkat Tumer, 2020. "Willingness to pay for increasing river water quality in Aksu River, Turkey," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(7), pages 6495-6503, October.
    2. Durba Biswas & L. Venkatachalam, 2015. "Farmers' Willingness to Pay for Improved Irrigation Water — A Case Study of Malaprabha Irrigation Project in Karnataka, India," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 1(01), pages 1-24.
    3. Weldesilassie, Alebel B. & Fror, Oliver & Boelee, Eline & Dabbert, Stephan, 2009. "The Economic Value of Improved Wastewater Irrigation: A Contingent Valuation Study in Addis Ababa, Ethiopia," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(3), pages 1-22, December.
    4. Ejaz Qureshi, Muhammad & Ranjan, Ram & Ejaz Qureshi, Sumaira, 2010. "An empirical assessment of the value of irrigation water: the case study of Murrumbidgee catchment," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(1), pages 1-20.
    5. Simon Meunier & Dale T. Manning & Loic Queval & Judith A. Cherni & Philippe Dessante & Daniel Zimmerle, 2019. "Determinants of the marginal willingness to pay for improved domestic water and irrigation in partially electrified Rwandan villages," Post-Print hal-02179229, HAL.
    6. Claudy, Marius C. & Michelsen, Claus & O'Driscoll, Aidan, 2011. "The diffusion of microgeneration technologies - assessing the influence of perceived product characteristics on home owners' willingness to pay," Energy Policy, Elsevier, vol. 39(3), pages 1459-1469, March.
    Full references (including those not matched with items on IDEAS)

    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. Biswas, Durba, 2015. "Anchoring Effect in Context of a Familiar Good: A Case Study of Irrigation Water Supply in Rural India," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 38(4), pages 91-98, December.
    2. Girma T. Kassie & Hasan Boboev & Ram Sharma & Akmal Akramkhanov, 2021. "Willingness to Pay for Irrigation Services in the Cold Winter Deserts of Uzbekistan," Sustainability, MDPI, vol. 14(1), pages 1-15, December.
    3. Mikhail Miklyaev & Glenn P. Jenkins & Precious P. Adeshina, 2022. "Ex-Post Evaluation of The Algerian SWRO Desalination PPP Program," Development Discussion Papers 2022-14, JDI Executive Programs.
    4. Paul A. Hindsley & O. Ashton Morgan, 2020. "The Role of Cultural Worldviews in Willingness to Pay for Environmental Policy," Working Papers 20-03, Department of Economics, Appalachian State University.
    5. Toka, Agorasti & Iakovou, Eleftherios & Vlachos, Dimitrios & Tsolakis, Naoum & Grigoriadou, Anastasia-Loukia, 2014. "Managing the diffusion of biomass in the residential energy sector: An illustrative real-world case study," Applied Energy, Elsevier, vol. 129(C), pages 56-69.
    6. Elwin G. Smith & Mark E. Eiswerth & Terrence S. Veeman, 2010. "Current and Emerging Water Issues in Agriculture: An Overview," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(s1), pages 403-409, December.
    7. Chopra, Vasudha & Das, Sukanya, 2019. "Estimating Willingness to Pay for Wastewater Treatment in New Delhi: Contingent Valuation Approach," Ecology, Economy and Society - the INSEE Journal, Indian Society of Ecological Economics (INSEE), vol. 2(02), July.
    8. Dimitra Lazaridou & Anastasios Michailidis & Konstantinos Mattas, 2019. "Evaluating the Willingness to Pay for Using Recycled Water for Irrigation," Sustainability, MDPI, vol. 11(19), pages 1-8, September.
    9. Jingchao, Zhang & Kotani, Koji & Saijo, Tatsuyoshi, 2018. "Public acceptance of environmentally friendly heating in Beijing: A case of a low temperature air source heat pump," Energy Policy, Elsevier, vol. 117(C), pages 75-85.
    10. Mei, Bin & Wetzstein, Michael, 2017. "Burning wood pellets for US electricity generation? A regime switching analysis," Energy Economics, Elsevier, vol. 65(C), pages 434-441.
    11. Jiang, Qiang & Grafton, R. Quentin, 2012. "Economic effects of climate change in the Murray–Darling Basin, Australia," Agricultural Systems, Elsevier, vol. 110(C), pages 10-16.
    12. Christian A. Oberst & Reinhard Madlener, 2015. "Prosumer Preferences Regarding the Adoption of Micro†Generation Technologies: Empirical Evidence for German Homeowners," Working Papers 2015.07, International Network for Economic Research - INFER.
    13. Michelsen, Carl Christian & Madlener, Reinhard, 2012. "Homeowners' preferences for adopting innovative residential heating systems: A discrete choice analysis for Germany," Energy Economics, Elsevier, vol. 34(5), pages 1271-1283.
    14. Stefania Troiano & Daniel Vecchiato & Francesco Marangon & Tiziano Tempesta & Federico Nassivera, 2019. "Households’ Preferences for a New ‘Climate-Friendly’ Heating System: Does Contribution to Reducing Greenhouse Gases Matter?," Energies, MDPI, vol. 12(13), pages 1-19, July.
    15. Martey, Edward & Etwire, Prince M. & Adombilla, Ramson & Abebrese, Samuel O., 2023. "Information constraint and farmers’ willingness to pay for an irrigation scheduling tool," Agricultural Water Management, Elsevier, vol. 276(C).
    16. Thomson, Harriet & Liddell, Christine, 2015. "The suitability of wood pellet heating for domestic households: A review of literature," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 1362-1369.
    17. Houda Elmustapha & Thomas Hoppe & Hans Bressers, 2018. "Understanding Stakeholders’ Views and the Influence of the Socio-Cultural Dimension on the Adoption of Solar Energy Technology in Lebanon," Sustainability, MDPI, vol. 10(2), pages 1-17, January.
    18. Ruokamo, Enni, 2016. "Household preferences of hybrid home heating systems – A choice experiment application," Energy Policy, Elsevier, vol. 95(C), pages 224-237.
    19. Desta Woldetsadik & Pay Drechsel & Bernard Keraita & Fisseha Itanna & Heluf Gebrekidan, 2018. "Farmers’ perceptions on irrigation water contamination, health risks and risk management measures in prominent wastewater-irrigated vegetable farming sites of Addis Ababa, Ethiopia," Environment Systems and Decisions, Springer, vol. 38(1), pages 52-64, March.
    20. Freitas Gomes, Icaro Silvestre & Perez, Yannick & Suomalainen, Emilia, 2020. "Coupling small batteries and PV generation: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 126(C).

    More about this item

    Keywords

    Seemingly unrelated bivariate probit; Smallholder households’; Sustainable agricultural water; Willingness to pay;
    All these keywords.

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

    Statistics

    Access and download statistics

    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:spr:lsprsc:v:15:y:2022:i:1:d:10.1007_s12076-022-00300-0. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com/ .

    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.