Valuing Households’ Willingness to Pay for Water Transfers from the Irrigation Sector: A Case Study of the City of Seville (Southern Spain)

Alfonso Expósito
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Alfonso Expósito: Water, Environmental and Agricultural Resources Economics (WEARE) Research Group, Department of Economic Analysis, Universidad de Sevilla, 41018 Sevilla, Spain

Sustainability, 2019, vol. 11, issue 24, 1-18

Abstract: Water scarcity is increasing in many countries worldwide, and conflicts between alternative uses have arisen due to the high demand and the effects of climate change, among other factors. This paper employs a contingent valuation (CV) method to determine households’ willingness to pay (WTP) compensation to the irrigation sector to guarantee urban supply reliability under extreme water-scarcity conditions (e.g., during a drought period) through inter-sectoral water transfers. The data was obtained from a survey covering 250 households in the city of Seville. In order to estimate households’ WTP, a double-bounded approach is used. Results show that the average WTP would be between 2.53 and 2.59 euros (on a monthly basis), which would represent a viable annual water transfer of 14.3 Hm 3 from the irrigation sector, which would be compensated accordingly. This study shows that inter-sectoral water transfers should be considered a viable adaptation measure to manage the consequences of water scarcity in urban areas.

Keywords: contingent valuation; water transfers; urban users; willingness to pay (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
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