Applying CVM for Economic Valuation of Drinking Water in Iran

Abstract

Economic valuation of water is useful in the administrationand management of water. Population growth and urbanizationcaused municipal water demand increase in Iran.Limited water resource supply and urban water networkcapacity raised complexity in water resources management.Present condition suggests using economic value of water as acriterion for allocating policies and feasibility study of urbanwater supply projects. This study use contingent valuationmethod for determining economic value of drinking water inKohkiloye & Boyerahmad province. Required data set wereobtained from 177 questionnaires by applying stratified randomsampling in 2011 year. From 136 investigated urban households111 ones are willing to pay more for qualified drinking water.Also, from 41 investigated rural households only 3 ones arewilling to pay more for qualified drinking water. Resultsindicated that economic value of drinking water is 6877 Rialper cubic meter.

Keywords

• Economic Value of Water
• Willingness to Pay
• Municipal Water Consumption
• Contingent Valuation Method
• Kohkiloye & Boyerahmad Province.