Social Benefits Through Non-Parametric Contingent Valuation in invierte.pe. Case of Drinking Water Project in Peru

Abstract

Objective: The objective of the research is to estimate the social benefits through the non-parametric contingent valuation model in the framework of the National System of Multiannual Programming and Investment Management (Invierte.pe), for a project to improve the drinking water service in the city of Ilave - Peru.   Method: The methodology used was the non-parametric contingent valuation technique through the Kriström model; by collecting information through structured surveys to project beneficiaries on whether they are willing or not willing to pay for the improvement of drinking water service; taking into account that currently the national system of Peru Invierte.pe uses a different model to estimate the social benefits through the calculation for the release of resources and the benefits for increased consumption of drinking water.   Results: The results found show a willingness to pay through the non-parametric model of 4.58 Soles, and updated social benefits for the entire evaluation horizon of the project of 3,518,927.17 Soles.   Conclusions: Finally, it is concluded that it is possible to incorporate the nonparametric contingent valuation model in the monetization of the social benefits of drinking water projects within the administrative system of the Peruvian government Invierte.pe.