Estimating the Economic Value of Water Supply Function of Forests Using the Contingent Valuation Method: The Case of Karabük Yenice Forests, Türkiye

Abstract

Aims: This study aims to estimate the economic value of the water supply function of forests based on the example of Yenice Forests located within the borders of Karabük province. In the study, by using the contingent valuation method, the WTP for the protection and improvement of the water supply service of Yenice Forests was determined and the economic value was estimated. Study Design: As being one of the quantitative research methods, a survey is conducted for data collection with the people residing in Yenice district of Karabük province in Türkiye. For economic value estimation of ecosystem goods and services, total economic value approach including use values and non-use values components are generally used. The contingent valuation method is most preferred method, especially for non-use values. Place and Duration of Study: Yenice district spans an area of 1150 km², of which nearly 85% is covered with productive forestlands. Water supply function of Yenice forest is crucial and so it is selected as the study area. The survey was conducted with the people residing in Yenice district center and villages and benefiting from the water supply function of Yenice Forests. The surveys were applied in 2024. Methodology: The universe of the study consists of the population of Yenice district of Karabük province, and a total of 219 people were surveyed within the scope of the study. The surveys were applied by face-to-face interviews in 2024. All statistical analyses of the surveys were performed with IBM SPSS (Version 27) package program. In determining the willingness to pay value function, a multiple regression analysis model is used. There are some limitations of the study arising from the contingent valuation method such as being based on the theoretical market, having bias resources and not sufficiently reflecting the population. Results: The survey results show that the majority of respondents recognize that the water resources in Yenice Forests provide an important ecosystem service for the region. The average willingness to pay for the economic value of the water supply service of Yenice Forests was estimated as 791.57 ₺/year. Total willingness to pay is estimated with two different scenarios (in first scenario, the total population and in the second scenario, the number of households are taken as universe) as 198 million ₺ and 74 million ₺ respectively. Conclusion: The study's findings indicate that the economic value of the water supply service of the Yenice Forests is acknowledged by the local community; however, the willingness to contribute financially remains relatively low. This underscores the necessity of raising awareness about water resource conservation and encouraging active public participation in related processes.