Households' Willingness to Pay for Water Hyacinth Control in Lake Tana, Ethiopia: A Contingent Valuation Method Application

Abstract

Currently, water hyacinth (WH) has become a growing problem in Lake Tana. Infestations of this
weed have been causing environmental, economic, and social problems for the riparian
communities. This study uses a cross-sectional survey of 398 randomly selected households in
Bahir Dar, Ethiopia, to assess their willingness to pay (WTP) for its control over Lake Tana using
a contingent valuation approach by considering hypothetical scenarios encircling different socioeconomic variables. The Tobit regression model was used to analyze the socio-economic factors
influencing urban households’ WTP decisions for WH control in Lake Tana. The results showed
that households were on average willing to pay the amount of ETB 1011.436 with a total
contribution of ETB 77,624,226.2 for a one-time payment to clean WH from Lake Tana. The
findings show that residents' WTP for WH control is significantly related to income, having a job,
and being aware of WH, among other factors. The average WTP discovered can serve as a guide
for municipal officials in establishing a more appropriate fee to fund cleaning in WH, where both
regional and federal governments have collaborated.