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Title of Journal: Environ Econ Policy Stud

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Abbravation: Environmental Economics and Policy Studies

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Springer Japan

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10.1002/asl.688

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1867-383X

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Is willingness to pay for freshwater quality impro

Authors: Syed A Shah Dana L K Hoag John Loomis
Publish Date: 2016/09/30
Volume: 19, Issue: 4, Pages: 807-818
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Abstract

This study examines the effect of payment vehicle and managing agency on household’s stated willingness to pay WTP for freshwater quality improvement in Pakistan’s Swat River valley Contingent valuation questions scenarios were designed based on three different payment mechanisms a mandatory payment to government a donation to government and a donation to a local nongovernment organization NGO Results show that zero WTP response rate is lower significantly for donation to a local NGO compared to mandatory and voluntary payments to government Household’s annual donation to a local NGO is 28 which is almost double to mandatory and voluntary payments to government Interviews indicate that this difference might be due to households’ lack of trust of the government programs or fear of corruption or might be a strategic response to overstate actual WTP when asked about donations to an NGO The implications for contingent valuation researchers looking to value WTP in poverty dominated areas are that a donation to a local NGO can be used as one payment vehicle to obtain an upper bound on WTP and a mandatory payment to the government can be used as a lower bound


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