Valuing benefits from wastewater treatment and reuse using contingent valuation methodology

This study aims first to elicit residents’ Willingness to Pay (WTP) for the provision of central wastewater treatment and second farmers’ WTP for recycled water. A case study on a rural and costal tourist area is presented, located at the Municipality of Kissamos in northwest Crete. In the context of contingent valuation methodology, members from 450 households were interviewed, face to face. The mean WTP for the provision of wastewater treatment was € 21.02 to be paid as a surcharge on the quarterly water bill. Farmers’ mean WTP for recycled water, originating from wastewater treatement was 61.2% the price of fresh water, which corresponds to € 0.0872. 84.70% of them would use the oil produced after irrigating with recycled water.

This paper performs the valuation of environmental benefits form wastewater treatment and the benefits derived from the use of recycled water in Kissamos Municipality in the context of the contingent valuation methodology. Almost all residents (96.7%) agree with the construction of a wastewater treatment plant in the region, it is a common understanding that this project should be implemented. In order to obtain public acceptance of additional wastewater charges, it is of great importance to explain beforehand that these charges are necessary in order to obtain a high living standard. Wastewater charges are directly related to the water bill. Water in the latter is undervalued and therefore in this framework wastewater charges cannot reflect their true economic cost because they will be much more expensive than the water and therefore will seem irrational and unacceptable to the public. Residents are willing to pay for wastewater treatment on average 93.0% (=€ 21.02) of the amount they pay for their drinking water bill. Also, farmers participating in the research are willing to pay for recycled water on average 61.2% (€ 0.0872) of the freshwater price. This study is essential for two reasons. First, it performs valuation of the benefits arising from environmental projects and environmental goods. This is an input for a cost benefit analysis. Second, it informs and involves users in the decision making process which conforms to the EU 60/2000 water framework directive.