Estimating residents’ willingness to pay for groundwater protection in the Vietnamese Mekong Delta

Abstract

Groundwater in the Vietnamese Mekong Delta is facing the pollution and it needs to be protected. Searching literature reviews on economic valuation techniques, the contingent valuation method (CVM) has been popularly applied to estimate the economic value of water protection. This approach is based on a hypothetical scenario in which respondents are requested through questionnaires to reveal their maximum willingness to pay (WTP) for the water protection project.The study used the approach of CVM to analyze the households' motivations and their WTP for the program of groundwater protection in the Mekong Delta. The study performed that the residents in the delta were willing to pay approximately 141,730VND (US$6.74) per household a year. Groundwater could be an inferior good with the negative income effect found in the demanding for clean groundwater. Respondent's gender and groundwater-related health risk consideration were factors sensitively affecting the probability of demanding for groundwater protection.