Estimation, valuation and pricing of raw water as a strategy towards sustainable watershed management
2008
Espiritu, N.O., Philippines Univ. Los Baños, College, Laguna 4031 (Philippines). Coll. of Forestry and Natural Resources | Calderon, M.M., Philippines Univ. Los Baños, College, Laguna (Philippines). Inst.of Renewable and Natural Resources
In the past, water has tended to be considered as a free and public or commonly owned resource. Hence, consumption leads to wasteful use. Irrigation water which is by far the largest kind of water use, is practically free, while industrial water and domestic waters are highly subsidized. However, the imperatives of sustainable development calls for appropriate water pricing that would capture the water's true economic cost and value. Economic valuation of water has become a forefront issue in the need to manage water supply. This study was conducted in the Kaliwa watershed. It is a forest reserve covering an area of 27,596 ha located in the municipality of Tanay in Rizal Province [Philippines] and in the town of Geneal Nakar in the province of Quezon, Philippines. The watershed can become a good alternative water source to supply the water needs of Metro Manila. The study sought to: identify and evaluate the different onsite and off-site water users of the Kaliwa watershed; determine and evaluate the level of awareness of on-site stakeholders on the importance, use and problems of the Kaliwa watershed; evaluate the willingness to pay of on-site users for watershed management; and estimate a price for raw water in the Kaliwa watershed. Two evaluation methods were used to estimate, value and price the raw water from the Kaliwa watershed, namely, the contingent valuation and the cost recovery methods. Several recommendations were also suggested by the study to sustainably manage a natural resource like the Kaliwa watershed.
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