Farmers’ willingness to pay for water quality improvements: A case of small tanks in Anuradhapura District of Sri Lanka

Abstract

Natural water resources, particularly the tanks play a significant role in the livelihood of the farmer households in the Anuradhapura district. Over the years, these tanks have been abandoned due to pollution and other socioeconomic and political activities leading to a lack of access to adequate quality water supply. Inadequate estimation of tanks’ true value as a multipurpose resource is the key reason behind poor management. Therefore, the study aims to elicit the willingness to pay for water quality improvements of the tanks in the Anuradhapura area. Data were collected from a sample of randomly selected farmer households living adjacent to small tanks. A choice experiment was used to elicit the willingness to pay and the preferences for tank quality improvement. Results revealed that respondents are willing to pay 10% of monthly income generated from tank related activities as a payment for quality improvement. The study also demonstrates that the level of water quality improvements has a significant positive impact on people’s willingness to pay while the reduction of fertilizer level, fine and the payment do not have a significant impact. About 85 % of the respondents are willing to pay LKR. 100 as the service charge for tank water quality improvement mainly as they believe tank management to be their responsibility as a community. Study highlights the importance and community contribution for small tank rehabilitation programs in the Anuradhapura District.