Determinants of Willingness-To-Pay (WTP) for the Restoration and Maintenance of Korle Lagoon in Accra, Ghana
The Korle Lagoon which served as a special eco-system that sustained life and development in Accra has now become an environmental hazard. Determining only the willingness to pay (WTP) is not enough without knowing the factors that really influence individuals’ willingness to pay. This research used the Contingent Valuation Method (CVM) to determine the WTP for the restoration and maintenance of the Korle lagoon. With a sample of 360 respondents, the mean WTP indicates quite a strong demand for the restoration and maintenance of the Korle lagoon despite the rural-urban nature of the study area. A linear specification of WTP on the explanatory variables shows that all the variables were significant with the exception of age which had the right sign yet insignificant. The most influential factor was the income levels of the people. The study recommended that an improvement in the standards of living of the people in the study area will significantly impact on WTP for the restoration and maintenance of the Korle Lagoon.
Keywords: Willingness to Pay (WTP), Contingent Valuation Method (CVM), Korle Lagoon