Economic Valuation of Karu River`s Water from the View Point of Wheat Farmers in Molasani District

Khuzestan province is considered as one of Iran's agricultural hubs, food production and
supply make it necessary to use water and soil resources to the optimum potential.
Agricultural drainage waters, with their high volume and decentralized nature, are the main
source of return flow to the Karun River. These sources include pesticides and nutrients
(nitrate, phosphate) and have high pollution. The purpose of this study was to estimate
farmers’ willingness to pay to reduce water pollution. The study method was surveying with
Heckman method and using data from 120 farmers in the Molasany District, in 2012 .The
results showed that 85 percent of farmers were willing to pay for reducing pollution of the
river. Also, variables such as age, suggested price, family members, and cause of river
pollution had negative and significant effects on people willingness to pay. But, income,
education, farmers’ vision, the amount of damage, land ownership, and land size had
significant and positive effects. Average of farmers’ willingness to pay for reducing water
pollution was 188,000 Rials ($13 US) per year.