Keywords
referendum model
double-bounded model
maximum likelihood
How to Cite
##article.highlights##
- Willingness to pay (WTP) for improvements in the wastewater treatment system in Puno, Peru was estimated.
- WTP was estimated using the contingent valuation method with referendum and double-bounded models.
- A mean WTP of 4.38 PEN (1.46 USD) per household was estimated.
- The residents most affected by wastewater pollution have higher WTP.
- The double-bounded model is the most suitable to estimate WTP.
Abstract
Introduction: The collapse of the "El Espinar" Wastewater Treatment Plant (WWTP) in Puno, Peru, has resulted in much of the wastewater being discharged into Lake Titicaca’s Inner Bay, generating pollution and loss of well-being in the population.
Objective: To estimate the willingness to pay (WTP) for improvements in the wastewater treatment system in Puno, Peru.
Materials and methods: WTP was estimated through data obtained in a survey of 393 heads-of-household. The contingent valuation method’s linear and logarithmic models, with referendum and double-bounded questions, were used.
Results and discussion: A mean WTP of 4.38 PEN (1.46 USD) per household was estimated. WTP was affected by socioeconomic variables related to the household budget, educational level and geographical location of the home. Residents of the southern zone, the main area affected by the pollution caused by the wastewater discharge, have higher WTP than those living in the city’s central and northern areas.
Conclusion: Despite the belief in the low-payment culture, users are willing to pay if the benefits are obvious. With respect to the models used, the double-bounded model had greater theoretical consistency of results.
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