Willingness to pay for the Mekong River’s Flooding Alert System Affecting by Hydroelectricity Generator Project

Abstract

This research focused on mitigation plan to reduce damage cost from hydroelectricity Generator project. The objective of this study was analysing Willingness to Pay (WTP) for the Mekong River’s Flooding Alert System (MRFAS) affecting from hydroelectricity Generator project by elicitation 648 households in 8 provinces located alongside of the river including Chiang Rai, Nong Khai, Loei, Bueng Kan, Nakhon phanom, Mukdahan, Ubon Ratchathani and Amnart Charoen, Thailand. The data was analysed by using single bounded closed- ended CVM question, Non-parametric Model and Logistic Regression Model. The result showed that the WTP by means of the Non-Parametric Model was 219.14 Bath per household per year (6.10 US$/hh/y) and its total value was 8,429,230.80 Bath per year (234,539.46 US$/y). This finding also revealed that the negative correlation of household’s willingness to pay include the occupation (Beta = -0.884, sig = 0.001) and the distance between home to Mekong River (Beta = -0.329, sig = 0.003).