Contingent Valuation of the Drinking Water Quality in Dehloran City

Having access to safe drinking water is the biggest key to overall public health. Throughout human history, water has been recognized as the most basic element for survival and referred to as the rare elixir of life. The main purpose of this article is to estimate the economic value of the household water quality in Dehloran city using the contingent valuation method (CVM). Simple random sampling method was used, and the sample size of 384 individuals was determined using the Cochran formula with a 95% confidence level, P=50%, and a 5% error rate. The Cronbach's alpha coefficient was used for the reliability of the questionnaire, and its value was obtained as r=0.86. The logit model was used to measure the willingness to pay, and the parameters of this model were estimated based on the maximum likelihood method. In order to calculate the willingness to pay (WTP), three suggested amounts of 2000 Rials, 4000 Rials and 6000 Rials were presented as three interrelated questions for each family member per month based on the average household water consumption in Dehloran city. The results showed that the average willingness to pay to improving household water quality was 5875 Rials and the economic value of household water quality in Dehlran city is 29316 Rials per month. Moreover, variables such as age, concern about drinking water quality, information about communicable diseases, and monthly water bill have a significant effect on willingness to pay.