Economic Valuation of Agricultural producers’ WTP for the weather information service – A Case Study in Central Vietnam

National Economics University, 602 Giai Phong Street, Hai Ba Trung, Hanoi 10000 Vietnam

^* Corresponding author: Dinhductruong@gmail.com

Abstract

Most meteorological information services in Vietnam in general and in Central Vietnam to be specific are currently provided by the Vietnam Institute of Meteorology, Hydrology and Climate Change (IMHEN). This agency is responsible for researching and collecting meteorological information in all regions of the country, public and transfer the information via Vietnam Television, Weather Forecast News. As agricultural production activities are sensitive to weather and climate conditions, meteorological information services are more important for agricultural decision-makers than those in other sectors. This study uses the contingent valuation method to estimate the economic value of meteorological information services in Central Vietnam for agricultural producers. We assess the agricultural producers’ willingness to pay (WTP) for the meteorological information services, conducting a national face-to-face survey of 450 agricultural households in 16 communes in 4 Provinces in Central Vietnam. The results show the adjusted WTP for every agricultural household each year with a 95% confidence interval which ranges from 56.06 US dollars to 90.92 US dollars. The inferred annual economic value of meteorological information services for agricultural producers in the study site is between 28.06 million US dollars and 45.51 million US dollars. Moreover, the agricultural producers’ subjective assessment of weather forecast accuracy, farm size, and first bid price significantly affect the amount agricultural producers are willing to pay for meteorological information services.