Economic valuation of water in a natural protected area of an emerging economy : recommendations for El Vizcaino biosphere reserve, Mexico

Abstract

The El Vizcaino Biosphere Reserve is a natural protected area with limited hydrologic resources because there are no permanent surface streams. Ephemeral streams appear during scarce rains. This has led the inhabitants to use underground aquifers. However, excessive consumption and natural conditions have led to overexploitation of the aquifer and salt intrusion. The main objective is to determine the economic value for improvements in environmental service for providing water using the contingent valuation method (CVM). The results indicate a willingness to pay an additional US$2 per month to what is currently paid by consumers. The low income households appear to be willing to pay about US$1.70 and high income households, US$2.20. The willingness to pay for piped water is US$1.92, while those that remain unconnected, is US$2.52. The additional money collected should be used to improve water conservation, such as restoration of underground aquifers, maintain hydrological services, maintain the distribution system, build an infrastructure for a storage system, build waste water treatment plants, and find alternative water sources. The study offers pertinent quantitative information and recommendations to the decision-makers to improve water management in the reserve. The Presidential Decree of El Vizcaino Biosphere Reserve of 1988 will support attempts to obtain international economic resources for the proper management of the water resource for the inhabitants.