Economic Valuation of Protecting Urban River Water Pollution in Addis Ababa, Ethiopia: A Choice Experiment Approach
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Date
2014-10
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Addis Ababa University
Abstract
The objective of the study was to analyze households’ willingness to pay for protection of river water pollution that attaches an economic value to the river. The choice experiment technique was employed by means of interviewing 315 respondents. For the protection options, five attributes; river water quality, river water volume, riparian buffer zone, recreational facilities and monetary payments were identified and developed.
Attributes and socioeconomic characteristics were estimated using multinomial logit and random parameter logit models. Based on the best model fit, random parameter logit model with interactions result, respondents are willing to pay on average birr 90.34, 12.89 and 27.87 /respondent/year for additional level and birr 1.48/respondent/year for extra meter for river water quality, river water volume, recreational facilities and riparian buffer zone, respectively. Moreover, it is found that respondents are willing to pay on average birr 607.2, 753.2 and 886.2 /respondent/year for low, medium and high impact improvement scenarios. Priority should be given to the improvement of the water quality, since households attached a higher value for the attribute of river water quality.
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Natural Resource and Environmental Economics, Natural Resource, Environmental Economics