<p>This study estimates the economic value of <i>Nag-Aso</i> Lake in Manito, Albay, Philippines, and identifies the socio-economic, behavioral, and infrastructure-related factors influencing households’ willingness to pay (WTP) for its conservation and protection. Anchored in environmental economics, the research applies the Contingent Valuation Method (CVM) within a Random Utility Model (RUM) framework to elicit stated preferences for non-market ecosystem services. Primary data were collected from 443 residents, of whom 397 provided valid monetary bids. Logistic, ordered, and multivariate regression models were employed to examine determinants of WTP, complemented by parametric, truncated, and non-parametric (Turnbull) estimators, as well as a cost–benefit analysis. Results show strong community support, with 85.55% of respondents willing to contribute financially and 88.33% reporting being willing or very willing to pay. The most common bid was PhP20 (55.67%), reflecting household budget constraints, while higher contributions indicate heterogeneous preferences. Estimated mean WTP ranged from PhP46.00 (observed average) to PhP56.97 (logit-based RUM), with a conservative Turnbull mean of PhP173.38 per household annually. Hunger significantly reduced WTP, whereas environmental awareness, sanitation, and access to a community water system increased the likelihood of payment. Households located farther from the lake were 1.76 times more likely to contribute. Cost–benefit projections indicate annual benefits of PhP327,000 against costs of PhP197,700, yielding a positive net benefit of PhP129,300 and sustained gains over time. The findings demonstrate substantial local valuation of lake conservation and support the feasibility of flexible financing mechanisms, including user fees and payment for ecosystem services, to promote sustainable and participatory environmental management.</p>