Determinants of Farmers' WTP For Blue Nile River Protection

Developing countries including Ethiopia are strongly dependents on the existence of natural resources. Rivers or Water supplies are one component of the natural resource which play vital role for the continuity of life on earth. However, proper management of the River and provision of improved water supply at present's time is a formidable challenge. Therefore, the purpose of this study is to examine the determinants of farmer's willingness to pay for protection of Abay River. This study employed Contingent Valuation study with a double bounded elicitation format followed by open ended questions. A total of 158 randomly selected household heads were interviewed. Descriptive statistics, Econometrics Probit model and Seemingly Unrelated Bivariate Probit model were applied. Result of the study showed annual income, education, number of dependents in the household, family size, total cultivated land, extension contact, and community bylaw were determinant variables of farmers WTP in cash.