An Economic Valuation of Groundwater Protection

Groundwater in the Mekong Delta is facing the pollution, and it needs to be protected. Applying the contingent valuation method, the mean willingness-to-pay estimate by probit model was 8.86 USD per household per year. Groundwater could be an inferior good in the Delta with the negative income effect found in the demanding for clean groundwater. There were eight statistically significant variables, including both exogenous and endogenous, related to a respondent’s WTP response, while there were only four statistically significantly exogenous variables affecting the maximum offer price a respondent voted for in the OLS model. Respondent’s gender and groundwater-related health risk consideration were factors sensitively affecting the WTP values. Household income had a positive effect on the probability of demanding for groundwater protection.