Willingness to Pay for Improved Sanitation Services in Cambodia: CVM and CM Applications

By Pich Koun and Mitsuyasu Yabe.

Published by The International Journal of Environmental Sustainability

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Article: Print $US10.00
Article: Electronic $US5.00

This research was conducted to examine the rural people’s Willingness to Pay (WTP) and factors affecting their choices for improved sanitation services in Cambodia. The most preferences of latrine attributes and Marginal Willingness to Pay (MWTP) for each latrine attribute were also determined in this study. The specific methodological approaches employed were Contingent Valuation Method (CVM) and Choice Modeling (CM) techniques which are used to evaluate non-market good by eliciting people’s state preferences for different options in a hypothetical setting. The economic valuation in this study also involves people’s WTP which is identified as the maximum amount value of money that an individual contributed to equalize utility. Our analysis shows how it can yield invaluable information regarding rural people’s demands that can uniquely assists Cambodian policy makers, particularly government, development partners and local enterprises in developing new domestic latrine production, pricing and marketing strategies.

Keywords: Willingness to Pay, Improved Sanitation Services, CVM and CM Applications

The International Journal of Environmental Sustainability, Volume 9, Issue 1, pp.21-38. Article: Print (Spiral Bound). Article: Electronic (PDF File; 614.450KB).

Pich Koun

Master Student, Department of Agricultural Resource Economics, Faculty of Agriculture, Graduate School of Bioresource and Bioenvironmental Sciences, Kyushu University, Fukuoka, Kyushu, Japan

Through my working experience, I have been working as a full-time government official of the Department of Training and Research, the Ministry of Rural Development, Cambodia. The functions of my work place and the services provided are to alleviate national poverty and to improve rural people’s living standard. Currently, The Ministry of Rural Development in cooperation with development partners has promoted rural sanitation and hygiene services by launching many projects aiming to achieve Cambodian Millennium Development Goals (CMDGs) that by 2015, 50% of rural population have access to water supply, and 30% of them have access to household latrines. In line with this Millennium Development Goal, a research study was conducted to examine the rural people’s preferences for latrine and their knowledge about good sanitation and proper hygiene. Moreover, the people’s WTP for an improved latrine and the factors affecting their choices were also determined in this study. This study has established a baseline data which could be used for improved sanitation services in Cambodia, and it is also used as my master thesis at Kyushu University, Japan.

Prof. Mitsuyasu Yabe

Professor, Laboratory of Environmental Life Economics, Department of Agricultural and Resource Economics, Faculty of Agriculture, Kyushu University, Fukuoka, Japan

Mitsuyasu Yabe is a Professor at the Department of Agricultural and Resource Economics at Kyushu University in Japan. His areas of expertise are agricultural economics and environmental economics. He has been involved in a variety of research activities in the evaluation on externality of agricultural production, water resource conservation, food safety bio-fuel policy, the economics of genetically modified foods, and market-based environmental policy.