Economic valuation of the demand for the environmental water service of the forest of the micro-basin Madriguera, Siuna-Nicaragua

Abstract

This study estimated the willingness to pay (DAP) of the families residing in the urban area of the municipality of Siuna, who receive water for daily consumption from the Madriguera micro-watershed, due to the improvement in the water supply, through the contingent valuation method and the use of binary format. Measures of change in welfare were estimated through parametric estimates in the linear functional form. Likewise, the components of the total economic value that the beneficiaries assign to the water resource from the forest of the micro-watershed were calculated. The results of the willingness to pay (DAP), have revealed that the houses that have alternative water source, have a lower willingness to pay and vice versa. A high proportion of the population is willing to pay and they do so according to the types of economic value of direct use and inheritance. Those who are not willing to pay is because they do not have economic resources. The minimum value as a measure of welfare change is C$ 116.29 (One hundred and sixteen with 29 cents). This implies the amount of C$ 74, 890.76 monthly for a total of C$ 898, 689.12 annually. The beneficiaries recognize the importance of the good and their assessment is justified in that the environmental service of the micro-watershed generates well-being and favors the idea of implementing protection and conservation projects to avoid an unfavorable change.