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The Economic Value of Basin Protection to Improve the Quality and Reliability of Potable Water Supply: Some Evidence from Ecuador

By Samuel D. Zapata, Holger M. Benavides, Carlos E. Carpio and David B. Willis

Abstract

This study estimates the willingness to pay (WTP) of Loja’s households to protect two micro-basins that supply over 40 percent of potable water to the city. Results indicate that households have an average WTP of $5.80 per month, which corresponds to a 25 percent increase in the self-reported monthly water bill, to preserve the basins.Basin protection, contingent valuation, Loja, Ecuador, Environmental Economics and Policy, Land Economics/Use,

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