Valuing Non-agricultural Uses of Irrigation Water: Empirical Evidence from the Blue Nile River-basin of the Amhara Regional State, Ethiopia
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Date
2005-06
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A.A.U
Abstract
Using the contingent valuation method (CVM), the study sets out to analyze detemtints of households
WIP, estimate total WIP of and derive aggregate demand for non-crop uses of irrigation water. the study
used cross-sectional data corrected from 260 housefiolds in the Blue Nife River Basin of the Amhara Regional
State of Ethiopia through double-bounded value elicitation format with open-ended follow up questions
under detailed descriptions of two different scenarios, namely, existing and improved irrigation water supply
for domestic uses. 'The empirical models adopted by this study are profit and vibrate profit models.
Results of the the study reveal that respondents ' WIP is affected by a number of explanatory variables including
institution-related variables such as water users associations (WUAS) water father and commtmity-based
water management and choices of these institutions, and socio-economic variables like income, wealth,
ownership of ox, age, education and family size of respondents. Although females are responsible to fetch
water for domestic uses, being a female has no significant effect on the probability of accepting the proposed
did. Specific location of users, site, quantity and quality of irrigation water for domestic uses are other
explanatory variables that affect consumers ' WIP for non-crop uses of irrigation water. the study also finds
that using double-60unded value elicitation techniques does not improve statistical efficiency over sing{e-
bounded format.
Total WIP for gardenil1iJ and domestic use of irrigation water is estimated 6ased on open-ended and single-
60unded value felicitation formats and our scenarios. Assuming existing irrigation water quality, total WIP
for these uses of irrigation water is 'Birr 291, 776 and 363,063.6 per year using open-ended and single-bounded
mean WIP, respectively. After proposing quality improvement for domestic uses o/irrigation water but with
existing quality for gardening, the respective total WIP increases to 'Birr 361,336 and 409,441.6 per annum.
the following policy implications are derived from the study. :First, facilitating establishment and
strengthening capacity of WLLAS through decentralization could improve efficient and eqttita6Ce uses of
irrigation water. Second, since households are willing to pay for multiple uses of irrigation water, introducing
pricing in irrigation water uses may be promising. Finally, considering multiple uses of irrigation water in
developing and implementing irrigation water projects ensures sustainability and reduces conflicts among uses
and users of irrigation water.
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Keywords
Blue Nile, CVM, irrigation water, non-agricultural uses, WTP