An assessment of willingness to pay to avoid climate change induced flood

Abstract

Flood risk analysis provides a rational for the appraisal of policy options for the decision makers. In this paper, by employing referendum method and face to face questionnaire surveys for 210 households in West Rapti River in Nepal, the willingness to pays (WTPs) to avoid four climate change-induced flood scenarios were assessed. Differences on WTPs among age, sex and education groups were analysed, and correlation between WTPs and different types of incomes and flood related damage costs were tested. The WTP was lowest for age group below 35 and it was highest for the age group 35–44. Females suffered more from flood than males and hence their average annual WTP was higher than male's average. Similarly, the average WTP was higher for literate then illiterate people in all flood scenarios. The average annual WTPs were statistically significantly (p < 0.05) positively correlated with annual total income, farm income, livestock income and flood-related damage costs. The level of WTPs estimated in this study would be helpful for formulating flood-related policy and plan, prioritising investment and implementation of the programmes.