payments for watershed services: a key to sustainable watershed management

This lecture discusses the importance of payments for watershed service in ensuring sustainability watershed management. It uses the results of a contingent valuation (CV) survey conducted in Metro Manila, Philippines to show that domestic water users are actually willing to pay for watershed services. Specifically, the survey estimated that value that Metro Manila residents place on the water supply improvements that will result from better management of the Angat, Ipo, Umiray and La Mesa watersheds. The CV survey was conducted among 2,232 respondents. Thses people were drawn from the 13 municipalities and cities in Metro Manila that draw water from the four watersheds. There are two water distributors in the area: Maynilad Water Services, Inc. and the Manila Water Company, Inc. About two thirds of the respondents were connected to either of these two water distributors. The study found that Metro Manila residents have a low level of awareness about watersheds, but possess a good grasp of the role forests play in sustaining water supply . About 60% of the respondents revealed a wilingness to pay for improved watersheds management. The mean willingness to pay, estimated through a logic model, was found to be P29/month/household. The respondents' willingness to pay was affected by factors such as bid amount, the water distributor to which the respondents are connected, additional water expenses, age, income and house ownership. They are willing to pay mainly because they wanted the watersheds to continue providing a range of environmental services. Some respondents were not willing to pay because of income constraints and because they thought that watershed management should be the governments' respondents. The respondents said that they would prefer a water user fee to be added to their monthly water bills, with the proviso that this should be used solely for the management of the four watersheds supplying water t o Metro Manila.