Economic value evaluation of the Mekong river’s flooding alert system using contingent valuation method

Abstract

This research focus on the application of the contingent valuation method to the Mekong River's flooding warning system. The study area were 32 villages located in 8 provinces including Chiangrai, Nongkhai, Loei, Bungkan, Nakhonphanom, Mukdahan, Ubonratchathani and Amnartcharoen, Thailand, which have the Mekong River flow through the city. The objective of this research was analyzing willingness to pay for the Mekong River's flooding alert fee by elicitation 648 households in 8 provinces located alongside of the river. The study area were 32 villages located in such 8 provinces including Chiangrai, Nongkhai, Loei, Bungkan, Nakhonphanom, Mukdahan, Ubonratchathani and Amnartcharoen which have along the Mekong River flow through the city. The data was analyzed by using single bounded closed- ended CVM question, Non-parametric Model and Logistic Regression Model. The result showed that the willingness to pay 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 the Mekong River (Beta = -0.329, sig = 0.003).