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The Economic Benefits of Surface Water Quality Improvements in Developing Countries: A Case Study of Davao, Philippines


  • KyeongAe Choe
  • Dale Whittington
  • Donald T. Lauria


Two nonmarket valuation techniques-the contingent valuation method and travel cost model-are used to estimate the economic value that people in Davao, Philippines, place on improving the water quality of the rivers and sea near their community. The contingent valuation and travel cost estimates are very close to each other and are quite low, both in absolute terms and as a percentage of household income. These findings suggest that water pollution control is simply not a high priority for Davao's residents, and support the argument that households' willingness to pay for environmental amenities such as improved water quality is low.

Suggested Citation

  • KyeongAe Choe & Dale Whittington & Donald T. Lauria, 1996. "The Economic Benefits of Surface Water Quality Improvements in Developing Countries: A Case Study of Davao, Philippines," Land Economics, University of Wisconsin Press, vol. 72(4), pages 519-537.
  • Handle: RePEc:uwp:landec:v:72:y:1996:i:4:p:519-537

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    References listed on IDEAS

    1. George I. Treyz & Dan S. Rickman & Gang Shao, 1991. "The REMI Economic-Demographic Forecasting and Simulation Model," International Regional Science Review, , vol. 14(3), pages 221-253, December.
    2. Montgomery, W. David, 1972. "Markets in licenses and efficient pollution control programs," Journal of Economic Theory, Elsevier, vol. 5(3), pages 395-418, December.
    3. Oates, Wallace E & Portney, Paul R & McGartland, Albert M, 1989. "The Net Benefits of Incentive-Based Regulation: A Case Study of Environmental Standard Setting," American Economic Review, American Economic Association, vol. 79(5), pages 1233-1242, December.
    4. Thomas H. Tietenberg, 1980. "Transferable Discharge Permits and the Control of Stationary Source Air Pollution: A Survey and Synthesis," Land Economics, University of Wisconsin Press, vol. 56(4), pages 391-416.
    5. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, March.
    6. Krupnick, Alan J. & Oates, Wallace E. & Van De Verg, Eric, 1983. "On marketable air-pollution permits: The case for a system of pollution offsets," Journal of Environmental Economics and Management, Elsevier, vol. 10(3), pages 233-247, September.
    7. Atkinson, Scott & Tietenberg, Tom, 1991. "Market failure in incentive-based regulation: The case of emissions trading," Journal of Environmental Economics and Management, Elsevier, vol. 21(1), pages 17-31, July.
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