The Economic Benefits of Surface Water Quality Improvements in Developing Countries: A Case Study of Davao, Philippines

Two nonmarket valuation techniques-the contingent valuation method and travel cost model-are used to estimate the economic value that people in Davao, Philippines, place on improving the water quality of the rivers and sea near their community. The contingent valuation and travel cost estimates are very close to each other and are quite low, both in absolute terms and as a percentage of household income. These findings suggest that water pollution control is simply not a high priority for Davao's residents, and support the argument that households' willingness to pay for environmental amenities such as improved water quality is low.