Expansion of Environmental Users’ Fee System To Households For Enhanced Water Pollution Control in Laguna de Bay, Philippines

Rico C Ancog, Nicomedes D Briones, Leonardo M Florece, Antonio J Alcantara, Sofia A Alaira
Vol 11 No 2 (2008), pp. 58-67




The Environmental Users Fee System (EUFS) is a market instrument used by the Laguna Lake Development Authority (LLDA) since 1997 to reduce industrial water pollution. The exclusion of the household (domestic) sector is one major issue in the EUFS implementation. The households within the watershed region is considered to be the major contributor of the biological oxygen demand (BOD) loading of the lake. This study assessed the willingness to pay (WTP) among households within the Laguna de Bay region for water quality improvement. Using contingent valuation method, the WTP of 1643 households from eight municipalities and two cities within Laguna de Bay region was determined in 2006. Households both from lakeshore and inland municipalities are generally supportive to the idea of constructing wastewater treatment facilities to improve the lake’s water quality. The majority of the respondents (70%) would be willing to contribute a monthly average of PhP46.43 per household. Respondents’ income and educational attainment are significant factors in relation to WTP values.


Keywords: willingness to pay, market instrument, effluent charges, biological oxygen demand, environmental users? fee, polluters pay principle

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