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Can Contingent Valuation be Used to Measure the in Situ Value of Groundwater on the North China Plain?

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  • Yongping Wei
  • Brian Davidson
  • Deli Chen
  • Robert White
  • Baoguo Li
  • Jiaboa Zhang

Abstract

The over-exploited groundwater resources on the North China Plain have caused ecological problems, including lowering of the groundwater table, enlarging the depression zone and land subsidence. The contingent valuation method, a technique that reveals peoples’ preferences, is applied to measure the in situ value of groundwater in order to provide policy makers information on protection and restoration of groundwater in the region. It was found that only 28% of households were willing to pay some amount of money to preserve ground water. The estimated mean willingness to pay for each household was found to be only 1.26 Yuan/m 3 annually. The in situ non-use value of groundwater subject to over-exploitation was estimated to be 0.014 Yuan /m 3 . These amounts are insignificant when compared to the cost of protecting and restoring the groundwater, which are several hundreds times higher than the estimated willingness to pay. While some discrepancy was expected, the extent of this difference was unexpected. Thus, it would appear that the contingent valuation method does not provide an adequate estimate of the in situ value of groundwater on the North China Plain. It is hypothesized that one reason for this result may be the very low income and education levels of respondents in this area. An integrated economic-ecological modeling technique is recommended as an alternative option to the contingent valuation method in this case. Copyright Springer Science+Business Media, Inc. 2007

Suggested Citation

  • Yongping Wei & Brian Davidson & Deli Chen & Robert White & Baoguo Li & Jiaboa Zhang, 2007. "Can Contingent Valuation be Used to Measure the in Situ Value of Groundwater on the North China Plain?," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 21(10), pages 1735-1749, October.
    • Handle: RePEc:spr:waterr:v:21:y:2007:i:10:p:1735-1749
    DOI: 10.1007/s11269-006-9123-2
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    References listed on IDEAS

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    2. Suter, Jordan F. & Rouhi Rad, Mani & Manning, Dale T. & Goemans, Chris & Sanderson, Matthew R., 2021. "Depletion, climate, and the incremental value of groundwater," Resource and Energy Economics, Elsevier, vol. 63(C).
    3. Ahlheim, Michael & Börger, Tobias & Frör, Oliver, 2012. "The ecological price of getting rich in a green desert: A contingent valuation study in rural Southwest China," FZID Discussion Papers 55-2012, University of Hohenheim, Center for Research on Innovation and Services (FZID).
    4. M. Ghanbarpour & Mohsen Saravi & Shokoufe Salimi, 2014. "Floodplain Inundation Analysis Combined with Contingent Valuation: Implications for Sustainable Flood Risk Management," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 28(9), pages 2491-2505, July.
    5. Se-Ju Ku & Seung-Hoon Yoo, 2012. "Economic Value of Water in the Korean Manufacturing Industry," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(1), pages 81-88, January.
    6. Roberto Ponce & Felipe Vásquez & Alejandra Stehr & Patrick Debels & Carlos Orihuela, 2011. "Estimating the Economic Value of Landscape Losses Due to Flooding by Hydropower Plants in the Chilean Patagonia," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(10), pages 2449-2466, August.
    7. Stefanos Xenarios & Kostas Bithas, 2009. "Welfare Improvisation from the Receiving Waters of Urban Wastewater Systems in the Context of the Water Framework Directive," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 23(5), pages 981-1000, March.
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