A contingent valuation of smallholder farmers' willingness to pay for improved irrigation water supply in Egypt

Abstract

This study employs a double-bounded dichotomous choice contingent valuation experiment to investigate the willingness to pay (WTP) of 313 Egyptian smallholder farmers in the Nile Delta region for improved irrigation services. The results from probit and bivariate probit models reveal an inverse relationship between water price and WTP, underscoring the importance of carefully considering farmers' affordability thresholds in water pricing strategies. The probability of smallholder farmers' agreeing to pay for an improved irrigation scheme is positively associated with agricultural income, farm size, distance to the irrigation canal, trust in water institutions and attitudes towards investing in an improved water supply. Conversely, the probability of WTP is negatively associated with farming experience, perceptions and psychological distance. Overall, the empirical findings underscore the need for integrated and holistic approaches that account for the influence of various factors on farmers' decision-making processes and thus design effective water-resource management strategies.

Published in

Water and environment journal
2025

SLU Authors

• Abouhatab, Assem

  • Department of Economics, Swedish University of Agricultural Sciences
    
  • Arish University
  • Nordic Africa Institute

• Raza, Mohsin

  • Department of Economics, Swedish University of Agricultural Sciences
    
  • Wageningen University

• Ha, Thi Thanh Mai

  • Department of Economics, Swedish University of Agricultural Sciences
    

UKÄ Subject classification

Agricultural Economics and Management and Rural development

Publication identifier

• DOI: https://doi.org/10.1111/wej.12974

Permanent link to this page (URI)

https://res.slu.se/id/publ/142414