Thesis Undergraduate (B.S. Agribusiness Economics)--University of the Philippines, Mindanao

Water consists one-third of the earth's surface. However, rapid and uncontrolled urban development has contributed to reduced aquifer recharge and decline of groundwater levels. These situations could contribute to water scarcity and incomplete replenishment of groundwater levels, especially if watersheds are not protected. The Talomo-Lipadas Watershed (TLW) is one of the watersheds in Davao City and the major source of drinking water in the City. Through contingent valuation, an economic tool used for estimating the value that a person places on environmental goods and services, this study aimed to determine the factors that influence the household water users' willingness to pay (WTP) for the protection of TLW. Primary data were gathered from 390 respondents from the three districts in Davao City. Results of binomial logit regression revealed that bid amount and awareness about TLW were significant determinants of WTP. Using Tobit regression analysis, the study found that, on average, household water users were willing to pay a maximum of PhP70.22 per monthly for the protection of TLW. Maximum WTP amount was significantly influenced by bid amount, awareness about TLW, perception that water tastes good, perception that the water had no bacteria, and the use of Dumoy as another source of water. Those who were not willing to pay any amount were willing to undertake activities that could help in protecting the TLW such as more conscientious use of water, participation in information dissemination and tree planting activities. Results suggest that effort for information dissemination about role and importance of the TLW.