The economic value of basin protection to improve the quality and reliability of potable water supply: the case of Loja, Ecuador

The objective of this study was to estimate the economic value that people living in Loja, Ecuador, place on the protection of two basins when the protection is designed to improve both the quality and reliability of the water supply for human consumption by urban residents. Empirical results indica...

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Bibliographic Details
Published in:Water policy 2012-02, Vol.14 (1), p.1-13
Main Authors: ZAPATA, Samuel D, BENAVIDES, Holger M, CARPIO, Carlos E, WILLIS, David B
Format: Article
Language:English
Subjects:
Applied sciences
Basins
Buildings. Public works
Consumption
Distribution. Storage
Drinking water
Economics
Exact sciences and technology
Fairness
Gender
Households
Natural environment
Protection
Quality improvement
Reliability
Residents
Urban population
Value
Water consumption
Water quality
Water shortages
Water supply
Water supply. Pipings. Water treatment
Water users
Willingness to pay
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Summary:The objective of this study was to estimate the economic value that people living in Loja, Ecuador, place on the protection of two basins when the protection is designed to improve both the quality and reliability of the water supply for human consumption by urban residents. Empirical results indicate that households have an average willingness to pay (WTP) of $5.80 per month to preserve the basins. The main variables affecting WTP are current monthly water cost, perception about the fairness of the existing water price, the number of hours that service is available, and the gender of the individual interviewed. The results of this study, and the later implementation by the Loja City Municipality of a basin protection project funded through a fee on water users, provide evidence that households at all income levels strongly support and are willing to pay for a project that has the potential to improve the quality of water services and protect the environment.
ISSN:1366-7017
1996-9759
DOI:10.2166/wp.2011.007