Accounting for user expectations in the valuation of reliable irrigation water access in the Ethiopian highlands

Habtamu Tilahun Kassahun; Charles F. Nicholson; Jette Bredahl Jacobsen; Tammo S. Steenhuis

doi:10.1016/j.agwat.2016.01.017

Accounting for user expectations in the valuation of reliable irrigation water access in the Ethiopian highlands

Habtamu Tilahun Kassahun^*, Charles F. Nicholson, Jette Bredahl Jacobsen, Tammo S. Steenhuis

^*Corresponding author for this work

Section for Environment and Natural Resources

8 Citations (Scopus)

Abstract

We estimate the willingness-to-pay (WTP) for reliable access to irrigation water for a sample of farmers in a watershed of the Ethiopian highlands who do not have prior experience with irrigation. To address the lack of previous irrigation experience, we account for underlying expectations of future irrigation productivity using an Integrated Choice and Latent Variable (ICLV) econometric model. We then compare the ICLV estimates with alternative models that do not account for expectations regarding productivity increases with irrigation. Our results indicate that both the ICLV and alternative provide similar conclusions with respect to the mean WTP for reliable irrigation water access. However, ignoring farmers' perceptions would understate the uncertainty of the mean or aggregate WTP.

Original language	English
Journal	Agricultural Water Management
Volume	168
Pages (from-to)	45-55
Number of pages	11
ISSN	0378-3774
DOIs	https://doi.org/10.1016/j.agwat.2016.01.017
Publication status	Published - 2016

Keywords

Contingent valuation
Developing countries
Hybrid choice model
Integrated choice and latent variable model
Willingness to pay

Access to Document

10.1016/j.agwat.2016.01.017

Cite this

@article{aecce93e39f9478594f83c1a68d94392,

title = "Accounting for user expectations in the valuation of reliable irrigation water access in the Ethiopian highlands",

abstract = "We estimate the willingness-to-pay (WTP) for reliable access to irrigation water for a sample of farmers in a watershed of the Ethiopian highlands who do not have prior experience with irrigation. To address the lack of previous irrigation experience, we account for underlying expectations of future irrigation productivity using an Integrated Choice and Latent Variable (ICLV) econometric model. We then compare the ICLV estimates with alternative models that do not account for expectations regarding productivity increases with irrigation. Our results indicate that both the ICLV and alternative provide similar conclusions with respect to the mean WTP for reliable irrigation water access. However, ignoring farmers' perceptions would understate the uncertainty of the mean or aggregate WTP.",

keywords = "Contingent valuation, Developing countries, Hybrid choice model, Integrated choice and latent variable model, Willingness to pay",

author = "Kassahun, {Habtamu Tilahun} and Nicholson, {Charles F.} and Jacobsen, {Jette Bredahl} and Steenhuis, {Tammo S.}",

year = "2016",

doi = "10.1016/j.agwat.2016.01.017",

language = "English",

volume = "168",

pages = "45--55",

journal = "Agricultural Water Management",

issn = "0378-3774",

publisher = "Elsevier",

}

TY - JOUR

T1 - Accounting for user expectations in the valuation of reliable irrigation water access in the Ethiopian highlands

AU - Kassahun, Habtamu Tilahun

AU - Nicholson, Charles F.

AU - Jacobsen, Jette Bredahl

AU - Steenhuis, Tammo S.

PY - 2016

Y1 - 2016

N2 - We estimate the willingness-to-pay (WTP) for reliable access to irrigation water for a sample of farmers in a watershed of the Ethiopian highlands who do not have prior experience with irrigation. To address the lack of previous irrigation experience, we account for underlying expectations of future irrigation productivity using an Integrated Choice and Latent Variable (ICLV) econometric model. We then compare the ICLV estimates with alternative models that do not account for expectations regarding productivity increases with irrigation. Our results indicate that both the ICLV and alternative provide similar conclusions with respect to the mean WTP for reliable irrigation water access. However, ignoring farmers' perceptions would understate the uncertainty of the mean or aggregate WTP.

AB - We estimate the willingness-to-pay (WTP) for reliable access to irrigation water for a sample of farmers in a watershed of the Ethiopian highlands who do not have prior experience with irrigation. To address the lack of previous irrigation experience, we account for underlying expectations of future irrigation productivity using an Integrated Choice and Latent Variable (ICLV) econometric model. We then compare the ICLV estimates with alternative models that do not account for expectations regarding productivity increases with irrigation. Our results indicate that both the ICLV and alternative provide similar conclusions with respect to the mean WTP for reliable irrigation water access. However, ignoring farmers' perceptions would understate the uncertainty of the mean or aggregate WTP.

KW - Contingent valuation

KW - Developing countries

KW - Hybrid choice model

KW - Integrated choice and latent variable model

KW - Willingness to pay

U2 - 10.1016/j.agwat.2016.01.017

DO - 10.1016/j.agwat.2016.01.017

M3 - Journal article

AN - SCOPUS:84956641383

SN - 0378-3774

VL - 168

SP - 45

EP - 55

JO - Agricultural Water Management

JF - Agricultural Water Management

ER -

Accounting for user expectations in the valuation of reliable irrigation water access in the Ethiopian highlands

Abstract

Keywords

Access to Document

Fingerprint

Cite this