Willingness to Pay for Watershed Management

Equitable payments for ecosystem services are emerging as a viable tool to protect and restore ecosystems. Unlike previous studies using contingent valuation approach in Ethiopia, this study is unique in its scope and target users. It explores the possibility of payment for watershed services as an...

Full description

Bibliographic Details
Main Authors: S. T. Abebe, A. B. Dagnew, V. G. Zeleke, G. Z. Eshetu, G. T. Cirella
Format: Article
Language:English
Published: MDPI AG 2019-04-01
Series:Resources
Subjects:
Online Access:https://www.mdpi.com/2079-9276/8/2/77
_version_ 1798041371244756992
author S. T. Abebe
A. B. Dagnew
V. G. Zeleke
G. Z. Eshetu
G. T. Cirella
author_facet S. T. Abebe
A. B. Dagnew
V. G. Zeleke
G. Z. Eshetu
G. T. Cirella
author_sort S. T. Abebe
collection DOAJ
description Equitable payments for ecosystem services are emerging as a viable tool to protect and restore ecosystems. Unlike previous studies using contingent valuation approach in Ethiopia, this study is unique in its scope and target users. It explores the possibility of payment for watershed services as an economic tool in supporting and promoting sustainable land management and financing community-based watershed investments from electric users at a national level. We examine the sensitivity of users’ ability to generate funds for watershed services for sustainable watershed management through the raising of small amounts of money added onto a monthly electrical bill. Sampling frame covered four of the nine regional states of Ethiopia with more than 86% coverage dating back to 2014. A total of 501 urban and rural households and 100 organizations were interviewed over a five-year period from 2014–2019. We used a multistage sampling technique; we first selected cities, towns, and villages based on several data collection methodologies. The findings indicate that about 84% and 90% of households and organizations, respectively, showed their willingness to pay (WTP) additional fees for watershed management that could potentially reduce upland degradation and siltation. Specifically, more than half of the households and organizations and industries were willing to pay the surcharge for watershed management. Likewise, we developed a model estimation of results which verified the WTP amount, respectively. We concluded that funds generated from electric users play a possible role in contributing to the financing of watershed management efforts and could be taken as an important lesson for the watershed management continuum efforts Ethiopia-wide and in other countries.
first_indexed 2024-04-11T22:20:37Z
format Article
id doaj.art-febfe4b012844a6a845f8a237400ade8
institution Directory Open Access Journal
issn 2079-9276
language English
last_indexed 2024-04-11T22:20:37Z
publishDate 2019-04-01
publisher MDPI AG
record_format Article
series Resources
spelling doaj.art-febfe4b012844a6a845f8a237400ade82022-12-22T04:00:09ZengMDPI AGResources2079-92762019-04-01827710.3390/resources8020077resources8020077Willingness to Pay for Watershed ManagementS. T. Abebe0A. B. Dagnew1V. G. Zeleke2G. Z. Eshetu3G. T. Cirella4Polo Centre of Sustainability, 18100 Imperia, ItalyWater and Land Resource Center, Addis Ababa University, 3880 Addis Ababa, EthiopiaWater and Land Resource Center, Addis Ababa University, 3880 Addis Ababa, EthiopiaWater and Land Resource Center, Addis Ababa University, 3880 Addis Ababa, EthiopiaFaculty of Economics, University of Gdansk, 81-824 Sopot, PolandEquitable payments for ecosystem services are emerging as a viable tool to protect and restore ecosystems. Unlike previous studies using contingent valuation approach in Ethiopia, this study is unique in its scope and target users. It explores the possibility of payment for watershed services as an economic tool in supporting and promoting sustainable land management and financing community-based watershed investments from electric users at a national level. We examine the sensitivity of users’ ability to generate funds for watershed services for sustainable watershed management through the raising of small amounts of money added onto a monthly electrical bill. Sampling frame covered four of the nine regional states of Ethiopia with more than 86% coverage dating back to 2014. A total of 501 urban and rural households and 100 organizations were interviewed over a five-year period from 2014–2019. We used a multistage sampling technique; we first selected cities, towns, and villages based on several data collection methodologies. The findings indicate that about 84% and 90% of households and organizations, respectively, showed their willingness to pay (WTP) additional fees for watershed management that could potentially reduce upland degradation and siltation. Specifically, more than half of the households and organizations and industries were willing to pay the surcharge for watershed management. Likewise, we developed a model estimation of results which verified the WTP amount, respectively. We concluded that funds generated from electric users play a possible role in contributing to the financing of watershed management efforts and could be taken as an important lesson for the watershed management continuum efforts Ethiopia-wide and in other countries.https://www.mdpi.com/2079-9276/8/2/77watershed managementwillingness to pay (WTP)contingent valuationsustainabilityEthiopia
spellingShingle S. T. Abebe
A. B. Dagnew
V. G. Zeleke
G. Z. Eshetu
G. T. Cirella
Willingness to Pay for Watershed Management
Resources
watershed management
willingness to pay (WTP)
contingent valuation
sustainability
Ethiopia
title Willingness to Pay for Watershed Management
title_full Willingness to Pay for Watershed Management
title_fullStr Willingness to Pay for Watershed Management
title_full_unstemmed Willingness to Pay for Watershed Management
title_short Willingness to Pay for Watershed Management
title_sort willingness to pay for watershed management
topic watershed management
willingness to pay (WTP)
contingent valuation
sustainability
Ethiopia
url https://www.mdpi.com/2079-9276/8/2/77
work_keys_str_mv AT stabebe willingnesstopayforwatershedmanagement
AT abdagnew willingnesstopayforwatershedmanagement
AT vgzeleke willingnesstopayforwatershedmanagement
AT gzeshetu willingnesstopayforwatershedmanagement
AT gtcirella willingnesstopayforwatershedmanagement