Applying contingent valuation method for estimating willingness to pay to control urban flooding in Ho Chi Minh City

Abstract

Despite the implementation of many large scale projects involving in controlling urban flooding in Ho Chi Minh City, the issue of urban flooding has been a long-lasting issue for inhabitants in HCMC. There are many causes for the problem, both objective and man-made. This study conducts a contingent valuation (CV) study to find out the willingness to pay (WTP) for the controlling of urban flooding issue. The CV survey was done with the direct survey instrument on 180 households in HCMC. Double-bounded dichotomous choice question was also used. Non-parametric and parametric estimates for mean WTP are VND 464,654 and VND 380,000 per each household respectively. Bootstrapping procedure further solidifies these results.