Impact Analysis of Irrigation Projects: an Application of Contingent Valuation Method

Abstract

Water supply in rural and urban areas is an issue of primary concern, especially in developing countries. The objective of this study is to estimate some socioeconomic and environmental values of three irrigation lakes, constructed at Panagitsa village (Region of Central Macedonia, Prefecture of Pella). The study area is characterized, especially during the summer session, of limited water supply for irrigation purposes. Although the majority of Contingent Valuation Method (CVM) studies have been restricted to environmental goods, this method can applied to public goods in general. It is assumed that the consumers’ satisfaction of water supply service, their opinions about the water management system and its affordability might have an impact on their Willingness to Pay (WTP).Various outputs were defined and each one’s economic value was estimated. Water supply, recreation, health effects, social impact, environmental consequences and some more outputs were valued through the CVM. These values can assist managers and policy makers in making decisions regarding the opportunity cost of the irrigation projects, their management options and the project’s alterations or preservations. These values of the irrigation projects’ outputs are estimated under the assumption that all other wetlands or water resources in the region remain unchanged.