Willingness to pay for watershed conservation: are we applying the right paradigm?

Journal of Ecohydrology & Hydrobiology, 2017; 17 : 33–45

The values of watershed services from watersheds has for many years been neglected, underestimated and not factored in land use decisions for sustainable management. Sustainable management of watersheds and environmental friendly economic activities are vital for sustained water flow, steady supply of ecosystem services for societal needs and enhancement of aquatic vegetation and animal species. The problem of the failure to capture actual values of ecosystem services from watersheds and incorporate them in the national income accounting is profound in developing countries which are characterized with constrained budget for financing conservation programs. To resolve this problem attention has moved to market based instruments such as payment for watershed services (PWS). However, the approach to elicit the necessary information for PWS to kick off is still lacking. Furthermore, Ecohydrology, defined as an integrative sustainability science using the interactions between hydrology, biota and natural processes as management tools to reinforce ecosystem services on a broad range of landscapes (Zalewski, 2015) is a basis for the development and application of market-based approaches in watershed conservation. This study investigated small holder farmers’ willingness to pay (WTP) for watershed services in Pangani River Basin. A contingent valuation method was employed to elicit the willingness to pay for watershed conservation. A probit model was used to determine respondents’ response to WTP and factors conditioning the maximum amount they are WTP. Findings indicates that majority of respondents are willing to pay for watershed services. Similarly, result reveals that marital status, household size and distance from the water source positively influence smallholder farmers’ WTP and the maximum amount to be paid. Equally important occupation, household size, income from irrigation, and amount paid for irrigation were found to negatively influencing smallholder farmers’ WTP. The result also revealed that education level, total land size and yield from irrigated farm plot positively influence smallholder farmers’ WTP. These results therefore, indicate that establishment of PWS is feasible.