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

AUTHOR

Roel A. Alli

ABSTRACT

This study was conducted to estimate the economic value/or the protection of the Maas in watershed
reservation in lloilo, 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 openĀ­
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 (9 2. 9 2%) of the respondents knew the Maasin watershed reservation.
The same number (92.92%) of the respondent expressed WTP for the protection of the Maas in 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 CVMformats were almost similar. For 61, 800 households in lloilo, 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.
The CVM performed well in this study. Which indicates that it is a powerful and versatile tool for
measuring the economic benefits from non-marketed goods such as watershed

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