The Economic Value of Basin Protection to Improve the Quality and Reliability of Potable
Water Supply: Some Evidence from Ecuador
Abstract
This study estimates the willingness to pay (WTP) of Loja’s households to protect two micro-
basins that supply over 40 percent of potable water to the city. Results indicate that households
have an average WTP of $5.80 per month, which corresponds to a 25 percent increase in the self-
reported monthly water bill, to preserve the basins.
Key words: Contingent valuation, basin protection, Loja, Ecuador
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