Investigating the effect of interest rate on the willingness to pay for the protection of Caspian Sea

The population growth and the increasing demand for tourism led to an increase in the pollution of Caspian Sea. Considering the importance of Caspian Sea in natural ecosystems and also its impact on the regional countries and even the world, few studies have been done on financial contribution of individuals for its protection. This study examines the effect of interest rate on the amount visitors are willing to pay by using a single dichotomous choice questionnaire and a contingent valuation methods. The results showed that the willingness to pay for conservation of Caspian Sea has a significant negative relationship with 13% interest rate and a significant positive relationship with interest rate of 4%. The results showed that the average of willingness to pay of tourists for protection of Caspian Sea, is 51,215 Rials. According to the households in the area (2.6 person), each tourist family is ready to pay 133,200 Rrials for protection of sea. This study, therefore, provides the necessary justifications for NGOs to provide loans with low interest rates in order to provide protect Caspian Sea.