Contingent Economic Valuation Of A Water Supply Project In The Sucre Department, Colombia

The Contingent Valuation Method [CVM] emerges from environmental economics to assess the willingness to pay to improve or create a good or service for which there is no established market value. The objective of this research study is to assess through CVM a non-existent project, nonetheless necessa...

Full description

Saved in:
Bibliographic Details
Published in:Webology 2022-01, Vol.19 (6), p.610-625
Main Authors: Romero-Álvarez, Yaneth P, Anaya-Narváez, Alfredo R, Feria-Díaz, Jhon J
Format: Article
Language:English
Subjects:
Aquifers
Demand curves
Environmental economics
Hydrology
Natural resources
Prices
Sanitation
Surface water
Sustainability
Valuation methods
Water shortages
Willingness to pay
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:The Contingent Valuation Method [CVM] emerges from environmental economics to assess the willingness to pay to improve or create a good or service for which there is no established market value. The objective of this research study is to assess through CVM a non-existent project, nonetheless necessary for water service sustainability in the municipalities belonging to the Department of Sucre in Colombia by replacing the supply of an aquifer source [Morroa Aquifer] with a surface water source. The used methodology, of an inferential nature, consisted of estimating a Logit binary choice model with cross-sectional information from an intentional survey using the referendum format applied to 117 people living in the seven municipalities involved. Results allow to establish the probabilities of the willingness to pay in various scenarios, as well as the estimated average value of the contribution of the inhabitants of the Sucre Department for this project. Conclusions point to the importance that the interviewees give to the proposed project, with high probabilities in the willingness to pay for which the territorial governments should formulate it and study its feasibility to implement it.
ISSN:1735-188X