Economic Valuation of Canals and Tributaries’ Water Quality Improvement in Bangkok
Article Sidebar
Main Article Content
Abstract
This study aimed to analyze and estimate willingness to pay (WTP) and its determinants for the waterway quality improvement by using the samples in five districts of the Bangkok area and also to approximate the economic value of such a program. It is also meant to gauge individuals’ WTP for two scales of area development with three waterway improvement levels divided into six scenarios. Scenarios I, II, and III represent levels 1 (slightly), 2 (significantly), and 3 (completely) of improvement for only the nearest canal. Scenarios IV, V, and VI represent levels 1, 2, and 3 of improvement for all canals in the Bangkok area. The Contingent Valuation Method (CVM) has been deployed to value the proposed scenarios. The data set used in the econometric analysis consists of 626 responses for Single-Bounded Dichotomous Choice (SBDC) and Double-Bounded Dichotomous Choice (DBDC) elicitation formats. As a result, the individuals’ socioeconomic characteristics, which significantly affect the WTP, comprise awareness of the waterways’ quality problems, education, and age. The WTP values in scenarios I to VI, estimated with the SBDC model, are approximately 71.05, 71.51, 121.31, 73.43, 125.45, and 198.05 baht per month per household. However, such values, estimated with the DBDC model, are approximately 75.91, 96.93, 145.39, 111.78, 153.54, and 198.29 baht per month per household. The DBDC model gave a smaller variance of estimated WTP and complied more with the scope test. The total economic value of the improvement program estimated from the individuals’ WTP is approximately 1,093.11 Million baht annually.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Copyright
Connexion: Journal of Humanities and Social Sciences has an exclusive right to publish the accepted articles in any form. However, the author retains the following rights:
1. The right to the ownership of the article;
2. The right to use all or part of the article in his/her other works;
3. The right to re-produce the article for personal use or for use in the author’s organisation, in which case the author must obtain permission from Connexion: Journal of Humanities and Social Sciences;
4. The right to make copies of all or part of the work for educational use or for the author’s use in classroom teaching; and
5. The right to include the work (both the preprinted and printed versions) in an institutional repository.
References
Arrow, K., Solow, R., Portney, P., Leamer, . . . Schuman, H. (1993) Report of the NOAA panel on contingent valuation, Available: https://edisciplinas.usp.br/pluginfile.php/4473366/mod_folder/intro/Arow_WTP.pdf [15 November 2021]
Bateman, I. J., & Turner, R. K. (1993) ‘Valuation of the environment, methods and techniques: The contingent valuation method’, in. R. K. Turner (ed.), Sustainable environmental economics and management: Principle and practice, pp. 120-191, Belhaven Press.
Birol, E., & Das, S. (2010) Estimating the value of improved wastewater treatment: The case of river Ganga, India, Journal of Environmental Management, Vol. 91, No. 11, pp. 2163-2171. https://doi.org/10.1016/j.jenvman.2010.05.008
Boontanon, S. K. (2014) Wastewater management in Bangkok, Paper presented at the WEPA Sessions in 11th International Symposium on Southeast Asian Water Environment (SEAWE11), Mahidol University.
Boyle, K. J., Johnson, F. R., McCollum, D. W., Desvousges, W. H., Dunford, R. W., & Hudson, S. P. (1996) Valuing public goods: Discrete versus continuous contingent-valuation responses, Land Economics, vol. 72, no. 3, pp. 381-396. https://doi.org/10.2307/3147204
Choe, K., Whittington, D., & Lauria, D. T. (1996) The economic benefits of surface water quality improvements in developing countries: A case study of Davao, Philippines, Land Economics, vol. 72, no. 4, pp. 519-537. https://doi.org/10.2307/3146913
Chopra, V., & Das, S. (2019) Estimating willingness to pay for wastewater treatment in New Delhi: Contingent valuation approach, Ecology, Economy and Society–the INSEE Journal, vol. 2, no. 2, pp. 75-108. https://doi.org/10.37773/ees.v2i2.78
Deh-Haghi, Z., Bagheri, A., Fotourehchi, Z., & Damalas, C. A. (2020) Farmers’ acceptance and willingness to pay for using treated wastewater in crop irrigation: A survey in western Iran, Agricultural Water Management, vol. 239. https://doi.org/10.1016/j.agwat.2020.106262
Department of Provincial Administration, Ministry of Interior. (2019) Population, area, density, number of houses classified by subdistrict in Bangkok 2019 (จำนวนประชากร พื้นที่ ความหนาแน่น จำนวนบ้าน จำแนกตามแขวง ในเขตกรุงเทพมหานคร 2562), Available: https://webportal.bangkok.go.th/upload/user/00000130/BMA_STATSITICS%202562/2.Stat_Soc_62/Soc_Pop_05_62.xlsx [11 August 2021] (in Thai)
Drainage and Sewerage Department, Bangkok Metropolitan Administration. (2021) Water quality data for 8 large plants, water quality data for 15 small plants (ข้อมูลคุณภาพน้ำ 8 โรงใหญ่ ข้อมูลคุณภาพน้ำโรงเล็ก 15 แห่ง), Available: https://drive.google.com/drive/folders/0B2T8BVW9hMcuZkE3VmtxU1BZNk0?resourcekey=0-dTGjGkpY6YduyclYS5qgPQ [26 October 2021] (in Thai)
Freeman III, A. M., Herriges, J. A., & L. Kling, C. (1993) The measurement of environmental and resource values: Theory and methods, Resources for the Future.
Fujita, Y., Fujii, A., Furukawa, S., & Ogawa, T. (2005) Estimation of willingness-to-pay (WTP) for water and sanitation services through contingent valuation method (CVM) - A case study in Iquitos city, The Republic of Peru, JBICI Review, no. 10, pp. 59-87.
Genius, M., Manioudaki, M., Mokas, E., Pantagakis, E., Tampakakis, D., & Tsagarakis, K. P. (2005) Estimation of willingness to pay for wastewater treatment, Water Supply, vol. 5, no. 6, pp. 105-113. https://doi.org/10.2166/ws.2005.0055
Habb, T. C., & McConnell, K. E. (2003) Valuing environmental and natural resources: The econometrics of non-market valuation, Edward Elgar Publishing.
Japan International Cooperation Agency (JICA). (2011) Preparatory survey for Bangkok wastewater treatment project in Thailand, Available: https://openjicareport.jica.go.jp/pdf/12034567.pdf [23 November 2021]
Le, T. T. P., & Aramaki, T. (2019) Factors affecting households’ willingness to pay for improved wastewater services in Ho Chi Minh City, Vietnam, Journal of Water and Environment Technology, vol. 17, no. 3, pp. 163-173. https://doi.org/10.2965/jwet.18-067
Makwinja, R., Kosamu, I. B. M., & Kaonga, C. C. (2019) Determinants and values of willingness to pay for water quality improvement: Insights from Chia Lagoon, Malawi, Sustainability, vol. 11, no. 17. https://doi.org/10.3390/su11174690
Okadera, T., Syutsubo, K., Yoochatchaval, W., Ebie, Y., & Kubota, R. (2020) Water volume - and BOD - based flow analysis for domestic wastewater treatment using wastewater inventories of Bangkok, Thailand, Journal of Water and Environment Technology, vol. 18, no. 2, pp. 71-79. https://doi.org/10.2965/jwet.19-064
Seenprachawong, U. (2001) An economic analysis of coral reefs in the Andaman Sea of Thailand, Economy and Environment Program for Southeast Asia (EEPSEA). https://blogs.ubc.ca/apfnet04/files/2015/08/SUFES_05_Module-VI_Economic-Analysis-of-Coral-Reefs.pdf
Seenprachawong, U. (2006) Economic valuation of cultural heritage: A case study of historic temples in Thailand, Economy and Environment Program for Southeast Asia (EEPSEA).
Tapvong, C., & Kruavan, J. (1999) Water quality improvements: A contingent valuation study of the Chao Phraya river, Economy and Environment Program for Southeast Asia (EEPSEA).
Trang, T. T. T., Rañola, R. F., & Song, N. V. (2018) Households’ willingness-to-pay for wastewater treatment in traditional agro-food processing villages, Nhue-Day River Basin, Vietnam: Case study in Hanoi city, Journal of Environmental Protection, vol. 9, no. 10, pp. 1021-1033. https://doi.org/10.4236/jep.2018.910063
Vanberg, V. J. (2018) Individual choice and social welfare: Theoretical foundations of political economy, Albert-Ludwigs-Universität Freiburg, Institut für Allgemeine Wirtschaftsforschung, Abteilung für Wirtschaftspolitik und Ordnungsökonomik. https://www.econstor.eu/bitstream/10419/175379/1/1014349494.pdf
Whittington, D., Briscoe, J., Mu, X., & Barron, W. (1990) Estimating the willingness to pay for water services in developing countries: A case study of the use of contingent valuation surveys in Southern Haiti, Economic Development and Cultural Change, vol. 38, no. 2, pp. 293-311. https://doi.org/10.1086/451794
World Bank. (2020, March 19) Wastewater a resource that can pay dividends for people, the environment, and economies, says World Bank, Available: https://www.worldbank.org/en/news/press-release/2020/03/19/wastewater-a-resource-that-can-pay-dividends-for-people-the-environment-and-economies-says-world-bank [15 November 2021]