Economic Value of Wondo Genet Catchment Forest in Domestic Water Supply Services, Southern Ethiopia

Abstract

This study assess the economic value of Wondo Genet cachment forest (WGCF) in domestic water supply of the community. Contingent valuation method was used to determine factors affecting households’ willingness to pay (WTP) to conserve the forest for improving of water quality.  The Double Bounded Dichotomous Choice technique followed by open-ended questions were applied.  Bivariate probit models was employed for data analysis. Samples of 215 households were randomly selected for the detailed face to face household interviews. Results of the study showed that most respondents were WTP for forest conservation. Respondents to this hypothetical scenario revealed that sampled households expressed their WTP from the open ended elicitation method was 26.31 ETB per month added with water bills. The mean WTP for the double bounded bivariate and covariate are estimated from 35 ETB to 30 ETB per month for the initial bid and for the follow up bid respectively. The results of the model revealed that Sex, Education and income have positive and significant effects on WTP while Age, Family size and amount of bid have a negative and significant effect. In conculusion, the economic value of the study forest resources found to be substantial that users are WTP about 1.8 million ETB per year for its conservation and sustained supply of drinking quality water.

Keywords: Economic value of Forests, willingness to pay, contingent valuation method, Wondo Genet catchment Forest