Economic valuation of flood prevention in Marikina City.

Date

10-2010

Degree

Bachelor of Science in Economics

College

College of Arts and Sciences (CAS)

Adviser/Committee Chair

Ramirez, Paul Joseph B.

Co-adviser

Arias, Jaime Kim B.

Committee Member

Catelo, Ma. Angeles O. Lantican, Flordeliza A.

Abstract

DE LA CRUZ, VIKTOR FRANCISCO DEQUILLA. 2010. University of the Philippines Los Baños. ECONOMIC VALUATION OF FLOOD PREVENTION IN MARIKINA CITY. (Undergraduate Thesis) Adviser: Prof. Paul Joseph B. Ramirez This study primarily aimed to conduct a household valuation for flood prevention in Marikina. Specifically, it aimed to identify and value the flood damages to the residents of Marikina City, assess the household’s willingness to pay (WTP) for flood prevention measures, determine the factors affecting the household’s valuation for the flood-prevention projects, and compare the value of flood damages and household’s valuation for flood prevention projects. Two hundred ninety-six randomly selected households from 5 different barangays in Marikina City were interviewed to determine their socio-demographic attributes, household characteristics, and willingness to pay. A single bound dichotomous choice Contingent Valuation Method (CVM) was used to assess the households’ valuation of flood prevention projects. A direct cost method was used to estimate the direct cost of flooding to households. Logistic regression was also employed to see the interaction of socio-demographic variables and other variables interact with WTP response. Finally, a Turnbull estimator was employed to estimate the mean WTP of household respondents. Out of the 296 respondents, 144 (49%) of the total 296 respondents answered “yes” to the dichotomous choice WTP question. The Turnbull mean WTP for all respondents is calculated to be PhP136.22 with a highest probability of a “yes” response (73.53%) from Barangay Nangka and a lowest probability of a “yes” response (26.39%) from Barangay Concepcion I. The total damages of respondents amounts to PhP 11,433,000 and the expected annual damages is PhP 228,660 for 296 households or PhP 772.5 per household. The Turnbull mean WTP for all respondents is calculated to be PhP136.22 and the total social benefits from taxes for the flood prevention program amounts to PhP 13,864,359. This is can cover one or two infrastructure projects for flood prevention. Only about 48.06% of the total cost of the project can be covered by the tax collected from the residents of Marikina.

Language

English

Location

UPLB Main Library Special Collections Section

Call Number

Thesis

Document Type

Thesis

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