Economic valuation for the protection of Maasin Watershed Reservation in the Philippines

The study was conducted to estimate the economic value for the protection of the Maasin Watershed Reservation in Iloilo, Philippines. The Contigent Valuation Method (CVM) was adopted to measure people's valuation of watershed protection with willingness to pay (WTP) and willingness to accept (WTA) as measures. Two WTP format methods were used: the payment card and the open-ended question. A total of 360 respondents (240 off-site and 120 on-site) were interviewed. Opportunity cost analysis was used to estimate the costs incurred by local residents as a result of watershed protection. Factors affecting WTP were determined using the Tobit (Censored regression) model, while factors affecting WTA compensation were derived using the multiple regression model. Findings showed that majority (92.92%) of the respondents knew the Maasin Watershed Reservation. The same number (92.92%) of respondents expressed WTP for the protection of the Maasin Watershed Reservation. The mean annual WTP value to protect and pressure the Maasin Watershed Reservation was P146.00. For all households in Iloilo, the total social WTP value was estimated to be P9 M/year. WTP for the protection of Maasin Watershed Reservation was significantly affected by household income, civil status, educational attainment of the respondents, the dummy variables for domestic water consumption, and for household who experienced flood from the watershed. Regression analysis showed that WTA compensation was significantly influenced by age of respondents, number of years in school, household income, farm income, number of bamboo planted, and the dummy for location. Opportunity cost analysis showed that average foregone income of the farmers from the forest and perrenial crops was P79,517.78. The WTA and opportunity cost value were almost similar