Farmers’ Willingness-to-Pay (WTP) for Water Quality Improvements: Insights from Anuradhapura District of Sri Lanka
Dulanjana Hansini, Menuka Udugama and Piyumi Ranadewa
Abstract
Background: Tanks and reservoirs play a significant role in the livelihood of the farmer households in the Anuradhapura district. Over the years, these tanks have been abandoned due to pollution and other socio-economic and political activities. As a result, the villagers lack access to adequate quality water supply. Inadequate estimation of tanks’ true value as a multipurpose resource is the key reason behind poor management. Therefore, this study aims to elicit the Willingness-to-Pay (WTP) for water quality improvements of the tanks in the Anuradhapura area.
Methods: Data were collected from a sample of 120 randomly selected farmer households living adjacent to small tanks. A choice experiment was used to elicit the WTP and the preferences for water quality improvement in small tanks.
Results: Results revealed that respondents are willing to pay 10% of the monthly income generated from tank related activities, as a payment for quality improvement. Further, the level of water quality improvements had a significant positive impact on people’s WTP, while the reduction of fertilizer level, fine and the payment were not significant. About 85% of the respondents were willing to pay Rs.100.00 as the service charge for tank water quality improvement, mainly as they believe tank management to be their responsibility as a community.
Conclusions: Study highlights the importance and community contribution for small tank rehabilitation programmes in the Anuradhapura District.
Keywords: Choice Experiment, Small Tanks, Water Quality Improvement, Willingness-to-Pay