Estimating the Value of Drinking Water in Wilderness Areas, A Case Study; Yazd Township, Yazd Province, Iran

Insufficient water for various uses is one of the most important economic issues in wilderness areas. On the other hand with the population growth and economic development, water demand has increased. Thus, water demand management exerted through determination of the economic value of water is essential as an approach to the management and utilization of water resources. This study examined the willingness to pay for safe drinking water by using contingent valuation (CV). The required information was obtained during the spring of 2013, based on 480 completed questionnaires by the people using Mitchel and Carson Method. For measuring individual's WTP Logit model was used and according to MLE method, model parameters were estimated. The results show that the proposed rate and income variables of visitors are the most important factors which are statistically significant at p<1%. Annual average willingness to pay for safe drinking water was estimated 94764.59472 Rials and Value per cubic meter of water 268.06007 Rials. Based on the recent results, it is recommended to calculate the economic benefits of water projects, water allocation, and the economic value per cubic meter of water used based on the actual preferences of consumers. This can help guide policymakers, especially in the private sector to invest in water supply projects.