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Capturing Urban Households’ Benefits for Preserving Natural and Cultural Resources in a Neighboring Rural Area: A CVM Approach


  • Rosalina Palanca-Tan

    (Economics Department, Ateneo de Manila University)


Koronadal households benefit from Lake Sebu’s natural and cultural resources in terms of recreation, tourism income generation, supply of high quality tilapia, agricultural products supply, potential hydroelectric power source, cultural heritage, biodiversity, and climate change mitigation. These benefits encompass both use and non-use values which are integrated in a single estimate using the contingent valuation method. In the study, Koronadal households are asked for their willingness to pay (WTP) or contribute to natural and cultural resources rehabilitation and preservation efforts in the form of a lump-sum monthly amount collected together with their electricity bill payment. Household’s mean WTP is estimated to be between PhP52.42 (US$1.04) and PhP64.39 (US$1.27) per month. Multiplying the annualized WTP by the number of households in Koronadal, total potential annual contributions from Koronadal City would range from PhP29,244,533 (US$577,841) to PhP35,863,170 (US$708,618). Even just a fraction of this potential collection can support essential conservation efforts in Lake Sebu which up to the present have been inadequate due to financial constraints. Moreover, results of the regression analysis reveals that households are more likely to support the preservation program if the amount of required contribution is smaller and household income is higher. Older and more educated respondents are likewise more likely to support the program.

Suggested Citation

  • Rosalina Palanca-Tan, 2020. "Capturing Urban Households’ Benefits for Preserving Natural and Cultural Resources in a Neighboring Rural Area: A CVM Approach," Department of Economics, Ateneo de Manila University, Working Paper Series 202010, Department of Economics, Ateneo de Manila University.
  • Handle: RePEc:agy:dpaper:202010

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    References listed on IDEAS

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    More about this item


    benefit valuation; contingent valuation method; cultural heritage; natural environment; willingness to pay;
    All these keywords.

    JEL classification:

    • Q26 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Recreational Aspects of Natural Resources
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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