Estimating the Economic Value of Drinking Water in Dogonbadan Using the Contingent Valuation Method (CVM)

Subject Areas : Subjects

iman danaeifar ¹ (Master of Science in Agricultural Economics, Researcher of Jahad Daneshgahi of Unit Kohgiluyeh and Boyer Ahmad Province.)

Received: 2020-03-25 Accepted : 2021-08-02 Published : 2021-07-23

Keywords: Contingent Valuation, Willingness for Payment, Quality of Drinking Water, Dogonbadan,

Abstract :

This study aimed to estimate the economic value of drinking water in Doganbadan using the contingent valuation method (CVM). In order to examine the economic and social factors affecting the willingness to pay, the logit econometric model was used. The required data were collected through a field study, questionnaire completion, and in-person interviews with 600 residents of Dogonbadan using the multi-stage cluster sampling method. According to the results of the study, 79% of people were willing to pay amounts to help improve the quality of drinking water so that they wished to pay the amount of 5666 Riyals per cubic meters per month to improve the quality of drinking water. As well as, on the basis of this study, gender variable had no significant effect on households' willingness to pay. Other variables of the model including age, education level, family size, monthly income, satisfaction with the quality of water, and bid price were significant. Thus, taking into account the high value and importance of improving the quality of drinking water, it is recommended that policies be adopted to maintain water quality standards.

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