Are Farmers Willing to Pay for Centralized Mode Provision of Rural Domestic Sewage Treatment? A Large-Scale Assessment in North China

Abstract

Evaluation of farmers’ willingness to participate (WTPP) and willingness to pay (WTP) for the centralized mode provision (CMP) of rural domestic sewage treatment (RDST) is imperative to improve the rural environment as well as to alleviate government financial pressures. This study adopted the contingent valuation method as well as face-to-face interview questionnaires to assess rural residents’ provision mode preferences, WTPP, and WTP for the CMP of RDST in China. Based on 761 samples collected from Shandong, Jilin, and Gansu provinces of China, we applied econometric models to estimate farmers’ WTPP and WTP for the CMP of RDST and explore the potential influencing factors, respectively. Results show that 1) 81.87% of the farmers would be willing to contribute to CMP of RDST; 2) farmers’ perceptions of the necessity of RDST, pollution of rural domestic sewage, and government propaganda significantly and positively affect their WTP; and 3) the expected WTP for CMP of RDST with the total respondents and the respondents with positive WTPP were estimated to be 7.59 USD/year and 10.10 USD/year (for a total of 20 years), accounting for 16.28 and 21.65% of construction costs, respectively. Based on these outcomes, it could be further estimated that the aggregate value was between 179.05 million USD/year and 238.26 million USD/year which implied that the farmers’ WTP may be a potentially non-negligible funding source for the CMP of RDST. The enhancement of environmental awareness of farmers and strengthening of propaganda should be the next priority of the Chinese government. Priority should also be assigned to villages closer to towns when the government formulates relevant strategies and policies. The results of this study provide references for policy formulation related to broadening the funding sources in RDST and exploring farmer payment mechanisms and implications for other developing countries.