Accounting for user expectations in the valuation of reliable irrigation water access in the Ethiopian highlands
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Accounting for user expectations in the valuation of reliable irrigation water access in the Ethiopian highlands. / Kassahun, Habtamu Tilahun; Nicholson, Charles F.; Jacobsen, Jette Bredahl; Steenhuis, Tammo S.
In: Agricultural Water Management, Vol. 168, 2016, p. 45-55.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Accounting for user expectations in the valuation of reliable irrigation water access in the Ethiopian highlands
AU - Kassahun, Habtamu Tilahun
AU - Nicholson, Charles F.
AU - Jacobsen, Jette Bredahl
AU - Steenhuis, Tammo S.
PY - 2016
Y1 - 2016
N2 - We estimate the willingness-to-pay (WTP) for reliable access to irrigation water for a sample of farmers in a watershed of the Ethiopian highlands who do not have prior experience with irrigation. To address the lack of previous irrigation experience, we account for underlying expectations of future irrigation productivity using an Integrated Choice and Latent Variable (ICLV) econometric model. We then compare the ICLV estimates with alternative models that do not account for expectations regarding productivity increases with irrigation. Our results indicate that both the ICLV and alternative provide similar conclusions with respect to the mean WTP for reliable irrigation water access. However, ignoring farmers' perceptions would understate the uncertainty of the mean or aggregate WTP.
AB - We estimate the willingness-to-pay (WTP) for reliable access to irrigation water for a sample of farmers in a watershed of the Ethiopian highlands who do not have prior experience with irrigation. To address the lack of previous irrigation experience, we account for underlying expectations of future irrigation productivity using an Integrated Choice and Latent Variable (ICLV) econometric model. We then compare the ICLV estimates with alternative models that do not account for expectations regarding productivity increases with irrigation. Our results indicate that both the ICLV and alternative provide similar conclusions with respect to the mean WTP for reliable irrigation water access. However, ignoring farmers' perceptions would understate the uncertainty of the mean or aggregate WTP.
KW - Contingent valuation
KW - Developing countries
KW - Hybrid choice model
KW - Integrated choice and latent variable model
KW - Willingness to pay
U2 - 10.1016/j.agwat.2016.01.017
DO - 10.1016/j.agwat.2016.01.017
M3 - Journal article
AN - SCOPUS:84956641383
VL - 168
SP - 45
EP - 55
JO - Agricultural Water Management
JF - Agricultural Water Management
SN - 0378-3774
ER -
ID: 178459112