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Keywords:

  • contingent valuation;
  • water quality economics;
  • watershed management;
  • restoration;
  • irrigation;
  • drinking water

Abstract:  Two CVM surveys were administered to 211 urban households and 188 rural farmer-irrigators in the Comarapa watershed in Bolivia, South America, to estimate stakeholder willingness to pay (WTP) for a proposed upper watershed restoration program. Mean monthly household WTP to improve drinking water was $1.95 (65% of current charges), while mean annual WTP among farmer-irrigators to improve irrigation water was $17 per hectare (34% of current costs). Aggregated to the entire population of households and farmer-irrigators total WTP is $77,400 per year, which is 77% of the minimum cost to implement a watershed restoration program.