Economic Valuation for the Protection of Maasin Watershed in Iloilo, Philippines
PDF

Keywords

watershed protection
Contingent Valuation Methodology
willingness to pay
willingness to accept compensation
economic valuation

How to Cite

Economic Valuation for the Protection of Maasin Watershed in Iloilo, Philippines. (2012). WVSU Research Journal, 1(2), 28-37. https://doi.org/10.59460/wvsurjvol1iss2pp28-37

Abstract

This study was conducted to estimate the economic value for the protection of the Maasin watershed reservation in Iloilo, Philippines. The Contingent Valuation Method (CVM) was adopted to measure people's valuation of watershed protection with willingness to pay (WTP) and willingness to accept (WTA) compensation as measures. Two WTP format methods were used, namely: The payment card and the open ended question. A total of 360 respondents (240 off-site and 120 on-site) were interviewed. Opportunity costs analysis was used to estimate the costs incurred by local residents as a result of watershed protection. Factors affecting WTP was determined using the Tobit (censored regression) model while factors affecting WTA compensation were derived using the multiple regression model.

Results showed that the majority (92.92%) of the respondents knew the Maasin watershed reservation. The same number (92.92%) of the respondents expressed WTP for the protection of the Maasin watershed reservation while all on-site respondents expressed WTA compensation for the watershed protection.

The mean annual WTP to protect and preserve the Maasin watershed reservation was Php 145.65. WTP bids using two CVM formats were almost similar. For 61, 800 households in Iloilo, the total social WTP were estimated to be P9 million per year. The mean WTA compensation of the on-site respondents expressed WTA compensation of the on-site respondent was P63,333,34. WTP for the protection of Maasin watershed reservation was significantly affected by household income, civil status, and educational attainment of the respondents the dummy variables for watershed. Regression analysis showed that WTA compensation was significantly influenced by age of the respondents, number of years in school, household income, farm income, number of bamboo planted, and the dummy for location.

PDF
Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Copyright (c) 2012 WVSU Research Journal