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Smallholder households’ willingness to pay for sustainable agricultural water supply in case of North West Ethiopia

Author

Listed:
  • Agerie Nega Wassihun

    (University of Gondar)

  • Yitayew Malede Nega

    (University of Gondar)

  • Wuletaw Mekuria Kebede

    (University of Gondar)

  • Elleni Ewonetu Fenta

    (University of Gondar)

  • Asrat Akele Ayalew

    (University of Gondar)

Abstract

The role of irrigation water pricing as a signal for scarcity and opportunity cost of water plays crucial role in promoting water use efficiency. Therefore, in this study households’ willingness to pay for sustainable agricultural water supply in case of North West Ethiopia was analyzed from October 2019 to December 2020 using 385 sample households selected through systematic random sampling technique. Double bounded dichotomous choice with follow up of open ended format of contingent valuation method were employed. Seemingly unrelated bivariate probit model was used to analyze determinants of households’ probability of willingness to pay. Accordingly, irrigation experience, livestock holding, respondent being male headed, having access to an irrigation input, and having access to market information have positive whereas, age of respondent, distance to market, owning motor pump, rainfall productivity, first and second bid values have negative but statistically significant effect on households’ probability of WTP for sustainable agricultural water supply. The mean WTP of households’ for improved irrigation water supply was estimated 961.68 and 972.66 birr per year/timad (0.25 ha) from double bounded dichotomous choice and open ended format respectively. The aggregate welfare gain of improved irrigation water supply from double bounded dichotomous choice and open ended format was estimated to be 39,068,250 and 39,514,312.5 birr per year respectively. Based on the findings, it is recommended that enhancing farmers’ awareness about resource scarcity and efficient utilization of scarce resource should be prerequisite for effective implementation of sustainable agricultural water charging schemes.

Suggested Citation

  • Agerie Nega Wassihun & Yitayew Malede Nega & Wuletaw Mekuria Kebede & Elleni Ewonetu Fenta & Asrat Akele Ayalew, 2022. "Smallholder households’ willingness to pay for sustainable agricultural water supply in case of North West Ethiopia," Letters in Spatial and Resource Sciences, Springer, vol. 15(1), pages 79-98, April.
    • Handle: RePEc:spr:lsprsc:v:15:y:2022:i:1:d:10.1007_s12076-022-00300-0
    DOI: 10.1007/s12076-022-00300-0
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    References listed on IDEAS

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    1. Durba Biswas & L. Venkatachalam, 2015. "Farmers' Willingness to Pay for Improved Irrigation Water — A Case Study of Malaprabha Irrigation Project in Karnataka, India," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 1(01), pages 1-24.
    2. Simon Meunier & Dale T. Manning & Loic Queval & Judith A. Cherni & Philippe Dessante & Daniel Zimmerle, 2019. "Determinants of the marginal willingness to pay for improved domestic water and irrigation in partially electrified Rwandan villages," Post-Print hal-02179229, HAL.
    3. Emine Ikıkat Tumer, 2020. "Willingness to pay for increasing river water quality in Aksu River, Turkey," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(7), pages 6495-6503, October.
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    5. Weldesilassie, Alebel B. & Fror, Oliver & Boelee, Eline & Dabbert, Stephan, 2009. "The Economic Value of Improved Wastewater Irrigation: A Contingent Valuation Study in Addis Ababa, Ethiopia," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(3), pages 1-22, December.
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    Cited by:

    1. Enyew, Tsegaye Molla, 2024. "Determinants of farmers’ willingness to pay for irrigation improvements in Northcentral Ethiopia," Agricultural Water Management, Elsevier, vol. 298(C).

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    More about this item

    Keywords

    Seemingly unrelated bivariate probit; Smallholder households’; Sustainable agricultural water; Willingness to pay;
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    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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