Researching the willingness to pay for protecting the water of the Nhue river

Abstract

The research is to analyse the factors affecting the willingness to pay (WTP) of households and estimate their WTP for protecting the water of the Nhue River through the application of Contigent Valuation Method (CVM) with single bounded questions and logistic regression. In addition, the research also compares the WTP in the model of single bounded CVM and the model with the elimination of the households opposing the program. The results indicate that of the factors, “trust” has the greatest influence on WTP. Next are “location”, “risk”, “education level”, “household type”, “income” and “age” of the heads of households. The factor of “gender” has unclear impacts on WTP. The average estimated WTP with the elimination of the households opposing the program is 12,680 VND/month/household, equivalent to 0.07% of the average income of each household in the research sample. Thereby, some suggestions are proposed to boost the protection of the Nhue River in the coming time.