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The Economic Value of Basin Protection to Improve the Quality and Reliability of Potable Water Supply: Some Evidence from Ecuador

Author

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  • Zapata, Samuel D.
  • Benavides, Holger M.
  • Carpio, Carlos E.
  • Willis, David B.

Abstract

This study estimates the willingness to pay (WTP) of Loja’s households to protect two micro-basins that supply over 40 percent of potable water to the city. Results indicate that households have an average WTP of $5.80 per month, which corresponds to a 25 percent increase in the self-reported monthly water bill, to preserve the basins.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:saeana:46773
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    File URL: http://purl.umn.edu/46773
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    References listed on IDEAS

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    1. Loomis, John B., 1990. "Comparative reliability of the dichotomous choice and open-ended contingent valuation techniques," Journal of Environmental Economics and Management, Elsevier, vol. 18(1), pages 78-85, January.
    2. Whittington, Dale, 1998. "Administering contingent valuation surveys in developing countries," World Development, Elsevier, vol. 26(1), pages 21-30, January.
    3. Casey, James F. & Kahn, James R. & Rivas, Alexandre, 2006. "Willingness to pay for improved water service in Manaus, Amazonas, Brazil," Ecological Economics, Elsevier, vol. 58(2), pages 365-372, June.
    4. 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.
    5. Ronald C. Griffin & James W. Mjelde, 2000. "Valuing Water Supply Reliability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 414-426.
    6. Whittington, Dale, et al, 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.
    7. W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall.
    8. 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.
    9. Loomis, John & Kent, Paula & Strange, Liz & Fausch, Kurt & Covich, Alan, 2000. "Measuring the total economic value of restoring ecosystem services in an impaired river basin: results from a contingent valuation survey," Ecological Economics, Elsevier, vol. 33(1), pages 103-117, April.
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    Cited by:

    1. Samuel D. Zapata & Carlos E. Carpio, 2014. "The theoretical structure of producer willingness to pay estimates," Agricultural Economics, International Association of Agricultural Economists, vol. 45(5), pages 613-623, September.
    2. Zapata, Samuel D. & Carpio, Carlos E., 2014. "Distribution-free Methods for Estimation of Willingness to Pay Models Using Discrete Response Valuation Data," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170453, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Basin protection; contingent valuation; Loja; Ecuador; Environmental Economics and Policy; Land Economics/Use;

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