Applying CVM for Economic Valuation of Drinking Water in Iran

Economic valuation of water is useful in the administration and management of water. Population growth and urbanization caused municipal water demand increase in Iran. Limited water resource supply and urban water network capacity raised complexity in water resources management. Present condition suggests using economic value of water as a criterion for allocating policies and feasibility study of urban water supply projects. This study use contingent valuation method for determining economic value of drinking water in Kohkiloye & Boyerahmad province. Required data set were obtained from 177 questionnaires by applying stratified random sampling in 2011 year. From 136 investigated urban households 111 ones are willing to pay more for qualified drinking water. Also, from 41 investigated rural households only 3 ones are willing to pay more for qualified drinking water. Results indicated that economic value of drinking water is 6877 Rial per cubic meter.