Willingness to pay for the barangay loudspeaker system as an early warning device among the residents of Sebaste, Antique

Abstract

The municipality of Sebaste in Antique Province is along the path of strong typhoons that can cause damage to lives and properties. The likely effects of these typhoons and other natural or man-made disasters can be mitigated by prompt information dissemination and early warning devices. Correct information and warnings that reach people at the right time can help them prepare for the impending disaster and avoid its likely effects. In Sebaste, there is no community-wide early warning system. This study focused on the value placed by the local residents of Sebaste, Antique for the establishment of an early warning device in the form of the Barangay Loud Speaker System (BLS) by estimating their willingness-to-pay (WTP) using Contingent Valuation Method. A total of 320 study participants representing their households, equally distributed in eight barangays of Sebaste, Antique were interviewed in January to March 2017 using a pilot-tested interview schedule. Seventy-five percent of the study participants were willing to pay for the BLS. The binary logit regression showed that bid price was the only factor that significantly (and negatively) affects WTP at 1% level of significance. The estimated monthly mean WTP with and without adjustment for the level of certainty were P68.00 and P60.75, respectively. The monthly Social WTP with and without adjustment for the level of certainty were Pl84,084.16 and Pl62,293.63, respectively. This study recommends that the local government of Sebaste should invest in the establishment of the BLS in each of 10 barangays of the municipality.