Determinants of Households Willingness to Pay for Conservation of Natural Kool Water (Burie Kool Wuha, W/Gojjam, Ethiopia)

Abstract

Most natural resources or environmental goods and services are exposed to degradation, society over utilize them for only their current benefits without thinking the future life span of these resources. The study analyzed determinants of households’ willingness to pay for conservation of natural Kool water (Burie Kool Wuha, W/Gojjam, Ethiopia). The contingent valuation method and Heckman two step model was employed. The results indicates that sex of the household head, education of the household, value attached to the resource by households as source of income, value attached to the resource by households reserving for future generation and wealth of the households has a significant and positive correlation with households WTP, and family size of households, education of the household and wealth of the households has a significant and positive correlation with the households payment levels. On the other hand, initial bid value has a negative correlation with the level of payments. Therefore, by taking the importance of the resource for the society and the households WTP, the policy makers need to focus on identified factors in designing strategies for the conservation of the resource.