IDEAS home Printed from https://ideas.repec.org/a/eee/lauspo/v109y2021ics0264837721003574.html
   My bibliography  Save this article

Eliciting farmers’ preferences and willingness to pay for land use attributes in Northwest Ethiopia: A discrete choice experiment study

Author

Listed:
  • Admasu, Wubante Fetene
  • Van Passel, Steven
  • Nyssen, Jan
  • Minale, Amare Sewnet
  • Tsegaye, Enyew Adgo

Abstract

This study investigates farmers’ preferences and willingness to pay for cropland attributes in Bahir Dar, northwest Ethiopia. A choice experiment is used to elicit farmers’ preferences between different land use attributes, including a monetary attribute. The study was conducted in the croplands that are threatened by land expropriation for urban expansion. A survey was undertaken with 144 farmers in four rural kebeles surrounding the city (Addis Alem, Weramit, Wereb and Zenzelima). In the survey, respondents were provided with hypothetical land purchasing decisions, with three alternatives (i.e., two hypothetical parcels and an opt-out option). A choice experiment was undertaken to measure farmers’ interest in different types of croplands, which varies with respect to irrigability, number of trees per ha, soil erosion resistance and water holding capacity of the cropland. Estimation of two mixed logit models was carried out. The estimation results show that, although the farmers did not show strong preferences for each attribute of the cropland, many farmers in the area showed interest in the proposed alternative croplands. Farmers show more interest for the land that is irrigable, gentle slope and with medium water holding capacity. The results also indicate that farmers assign highest marginal willingness to pay (MWTP) (79.01 ETB per square meter) for irrigated land, followed by medium water holding capacity with MWTP of 52.13 ETB per square meter. We believe that the results of this study would help land use policy and decision makers in the study area to consider the various attributes of cropland in land use planning, including land expropriation programs, which assures the sustainability of ecosystem services.

Suggested Citation

  • Admasu, Wubante Fetene & Van Passel, Steven & Nyssen, Jan & Minale, Amare Sewnet & Tsegaye, Enyew Adgo, 2021. "Eliciting farmers’ preferences and willingness to pay for land use attributes in Northwest Ethiopia: A discrete choice experiment study," Land Use Policy, Elsevier, vol. 109(C).
  • Handle: RePEc:eee:lauspo:v:109:y:2021:i:c:s0264837721003574
    DOI: 10.1016/j.landusepol.2021.105634
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264837721003574
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.landusepol.2021.105634?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lizin, Sebastien & Van Passel, Steven & Schreurs, Eloi, 2015. "Farmres' Perceived Cost of Land Use restrictions: A Simulated Purchasing Decision Using Dscrete Choice Experiments," 2015 Conference, August 9-14, 2015, Milan, Italy 212054, International Association of Agricultural Economists.
    2. Börger, Tobias & Hattam, Caroline & Burdon, Daryl & Atkins, Jonathan P. & Austen, Melanie C., 2014. "Valuing conservation benefits of an offshore marine protected area," Ecological Economics, Elsevier, vol. 108(C), pages 229-241.
    3. Small, Kenneth A & Rosen, Harvey S, 1981. "Applied Welfare Economics with Discrete Choice Models," Econometrica, Econometric Society, vol. 49(1), pages 105-130, January.
    4. Castillo-Eguskitza, Nekane & Hoyos, David & Onaindia, Miren & Czajkowski, Mikolaj, 2019. "Unraveling local preferences and willingness to pay for different management scenarios: A choice experiment to biosphere reserve management," Land Use Policy, Elsevier, vol. 88(C).
    5. Esther W. de Bekker‐Grob & Mandy Ryan & Karen Gerard, 2012. "Discrete choice experiments in health economics: a review of the literature," Health Economics, John Wiley & Sons, Ltd., vol. 21(2), pages 145-172, February.
    6. Zewdie, Markose Chekol & Van Passel, Steven & Cools, Jan & Tenessa, Daregot Berihun & Ayele, Zemen Ayalew & Tsegaye, Enyew Adgo & Minale, Amare Sewnet & Nyssen, Jan, 2019. "Direct and indirect effect of irrigation water availability on crop revenue in northwest Ethiopia: A structural equation model," Agricultural Water Management, Elsevier, vol. 220(C), pages 27-35.
    7. Chaikaew, Pasicha & Hodges, Alan W. & Grunwald, Sabine, 2017. "Estimating the value of ecosystem services in a mixed-use watershed: A choice experiment approach," Ecosystem Services, Elsevier, vol. 23(C), pages 228-237.
    8. Sayman, Serdar & Onculer, Ayse, 2005. "Effects of study design characteristics on the WTA-WTP disparity: A meta analytical framework," Journal of Economic Psychology, Elsevier, vol. 26(2), pages 289-312, April.
    9. Adamowicz W. & Louviere J. & Williams M., 1994. "Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 271-292, May.
    10. Takatsuka, Yuki & Cullen, Ross & Wilson, Matthew & Wratten, Steve D., 2005. "Using Choice Modeling to Value Ecosystem Services on Arable Land," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137950, Australian Agricultural and Resource Economics Society.
    11. Ladenburg, Jacob & Olsen, Søren Bøye, 2014. "Augmenting short Cheap Talk scripts with a repeated Opt-Out Reminder in Choice Experiment surveys," Resource and Energy Economics, Elsevier, vol. 37(C), pages 39-63.
    12. Jin, Jianjun & He, Rui & Wang, Wenyu & Gong, Haozhou, 2018. "Valuing cultivated land protection: A contingent valuation and choice experiment study in China," Land Use Policy, Elsevier, vol. 74(C), pages 214-219.
    13. Hoyos, David, 2010. "The state of the art of environmental valuation with discrete choice experiments," Ecological Economics, Elsevier, vol. 69(8), pages 1595-1603, June.
    14. Greene, William H. & Hensher, David A., 2003. "A latent class model for discrete choice analysis: contrasts with mixed logit," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 681-698, September.
    15. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    16. Ekin Birol & Melinda Smale & Ágnes Gyovai, 2006. "Using a Choice Experiment to Estimate Farmers’ Valuation of Agrobiodiversity on Hungarian Small Farms," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(4), pages 439-469, August.
    17. Jie Guo & Tianqi Zhu & Minghao Ou & Fengsong Pei & Xiaoyu Gan & Weixin Ou & Yu Tao, 2018. "A Framework of Payment for Ecosystem Services to Protect Cropland: A Case Study of the Yangtze River Delta in China," Sustainability, MDPI, vol. 10(1), pages 1-18, January.
    18. Julie Riise Kolstad, 2011. "How to make rural jobs more attractive to health workers. Findings from a discrete choice experiment in Tanzania," Health Economics, John Wiley & Sons, Ltd., vol. 20(2), pages 196-211, February.
    19. Górriz-Mifsud, Elena & Varela, Elsa & Piqué, Míriam & Prokofieva, Irina, 2016. "Demand and supply of ecosystem services in a Mediterranean forest: Computing payment boundaries," Ecosystem Services, Elsevier, vol. 17(C), pages 53-63.
    20. You, Liangzhi & Ringler, Claudia & Wood-Sichra, Ulrike & Robertson, Richard & Wood, Stanley & Zhu, Tingju & Nelson, Gerald & Guo, Zhe & Sun, Yan, 2011. "What is the irrigation potential for Africa? A combined biophysical and socioeconomic approach," Food Policy, Elsevier, vol. 36(6), pages 770-782.
    21. Mulatu, Dawit W. & van der Veen, Anne & van Oel, Pieter R., 2014. "Farm households' preferences for collective and individual actions to improve water-related ecosystem services: The Lake Naivasha basin, Kenya," Ecosystem Services, Elsevier, vol. 7(C), pages 22-33.
    22. Admasu, Wubante Fetene & Van Passel, Steven & Minale, Amare Sewnet & Tsegaye, Enyew Adgo & Azadi, Hossein & Nyssen, Jan, 2019. "Take out the farmer: An economic assessment of land expropriation for urban expansion in Bahir Dar, Northwest Ethiopia," Land Use Policy, Elsevier, vol. 87(C).
    23. Swait, Joffre & Adamowicz, Wiktor, 2001. "Choice Environment, Market Complexity, and Consumer Behavior: A Theoretical and Empirical Approach for Incorporating Decision Complexity into Models of Consumer Choice," Organizational Behavior and Human Decision Processes, Elsevier, vol. 86(2), pages 141-167, November.
    24. Ryffel, Andrea Nathalie & Rid, Wolfgang & Grêt-Regamey, Adrienne, 2014. "Land use trade-offs for flood protection: A choice experiment with visualizations," Ecosystem Services, Elsevier, vol. 10(C), pages 111-123.
    25. Hanemann, W Michael, 1984. "Discrete-Continuous Models of Consumer Demand," Econometrica, Econometric Society, vol. 52(3), pages 541-561, May.
    26. Chun-Hung Lee & Chiung-Hsin Wang, 2017. "Estimating Residents’ Preferences of the Land Use Program Surrounding Forest Park, Taiwan," Sustainability, MDPI, vol. 9(4), pages 1-19, April.
    27. Hensher, David A., 2010. "Hypothetical bias, choice experiments and willingness to pay," Transportation Research Part B: Methodological, Elsevier, vol. 44(6), pages 735-752, July.
    28. Nick Hanley & Susana Mourato & Robert E. Wright, 2001. "Choice Modelling Approaches: A Superior Alternative for Environmental Valuatioin?," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 435-462, July.
    29. Robert Huber & Marcel Hunziker & Bernard Lehmann, 2011. "Valuation of agricultural land-use scenarios with choice experiments: a political market share approach," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 54(1), pages 93-113.
    30. Rambonilaza, Tina, 2005. "Land-use planning and public preferences: What can we learn from choice experiments method?," MPRA Paper 9225, University Library of Munich, Germany, revised May 2007.
    31. Mandy Ryan & Karen Gerard & Gillian Currie, 2012. "Using Discrete Choice Experiments in Health Economics," Chapters, in: Andrew M. Jones (ed.), The Elgar Companion to Health Economics, Second Edition, chapter 41, Edward Elgar Publishing.
    32. Danny Campbell & W. George Hutchinson & Riccardo Scarpa, 2006. "Lexicographic Preferences in Discrete Choice Experiments: Consequences on Individual-Specific Willingness to Pay Estimates," Working Papers 2006.128, Fondazione Eni Enrico Mattei.
    33. Schaafsma, Marije & Ferrini, Silvia & Turner, R. Kerry, 2019. "Assessing smallholder preferences for incentivised climate-smart agriculture using a discrete choice experiment," Land Use Policy, Elsevier, vol. 88(C).
    34. Estifanos, Tafesse Kefyalew & Polyakov, Maksym & Pandit, Ram & Hailu, Atakelty & Burton, Michael, 2020. "Managing conflicts between local land use and the protection of the Ethiopian wolf: Residents’ preferences for conservation program design features," Ecological Economics, Elsevier, vol. 169(C).
    35. Broch, Stine Wamberg & Strange, Niels & Jacobsen, Jette B. & Wilson, Kerrie A., 2013. "Farmers' willingness to provide ecosystem services and effects of their spatial distribution," Ecological Economics, Elsevier, vol. 92(C), pages 78-86.
    36. Kati Häfner & Ingo Zasada & Boris T. van Zanten & Fabrizio Ungaro & Mark Koetse & Annette Piorr, 2018. "Assessing landscape preferences: a visual choice experiment in the agricultural region of Märkische Schweiz, Germany," Landscape Research, Taylor & Francis Journals, vol. 43(6), pages 846-861, August.
    37. Arata, Linda & Diluiso, Francesca & Guastella, Gianni & Pareglio, Stefano & Sckokai, Paolo, 2021. "Willingness to pay for alternative features of land-use policies: the case of the lake Garda region," Land Use Policy, Elsevier, vol. 100(C).
    38. Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
    39. Danny Campbell & W. George Hutchinson & Riccardo Scarpa, 2006. "Lexicographic Preferences in Discrete Choice Experiments: Consequences on Individual-Specific Willingness to Pay Estimates," Working Papers 2006.128, Fondazione Eni Enrico Mattei.
    40. Melaku Bogale Fitawok & Ben Derudder & Amare Sewnet Minale & Steven Van Passel & Enyew Adgo & Jan Nyssen, 2020. "Modeling the Impact of Urbanization on Land-Use Change in Bahir Dar City, Ethiopia: An Integrated Cellular Automata–Markov Chain Approach," Land, MDPI, vol. 9(4), pages 1-17, April.
    41. Louviere, Jordan J & Hensher, David A, 1983. "Using Discrete Choice Models with Experimental Design Data to Forecast Consumer Demand for a Unique Cultural Event," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 10(3), pages 348-361, December.
    42. Jose M.L. Santos, 1998. "The Economic Valuation of Landscape Change," Books, Edward Elgar Publishing, number 1469.
    43. Gonzalez, Matias & Leon, Carmelo J., 2003. "Consumption process and multiple valuation of landscape attributes," Ecological Economics, Elsevier, vol. 45(2), pages 159-169, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wenjun Guo & Wei Zhao & Min Min, 2022. "Operation Scale, Transfer Experience, and Farmers’ Willingness toward Farmland Transfer-In: A Case Study of Rice–Crayfish Cultivating Regions in China," Sustainability, MDPI, vol. 14(7), pages 1-16, March.
    2. Follett, Lendie & Naald, Brian Vander, 2023. "Heterogeneity in choice experiment data: A Bayesian investigation," Journal of choice modelling, Elsevier, vol. 46(C).
    3. Shengnan Huang & Ehsan Elahi, 2022. "Farmers’ Preferences for Recycling Pesticide Packaging Waste: An Implication of a Discrete Choice Experiment Method," Sustainability, MDPI, vol. 14(21), pages 1-13, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    2. Lin, Yi-Hsing & Hong, Chun-Fu & Lee, Chun-Hung & Chen, Chih-Cheng, 2020. "Integrating Aspects of Ecosystem Dimensions into Sorghum and Wheat Production Areas in Kinmen, Taiwan," Land Use Policy, Elsevier, vol. 99(C).
    3. Haghani, Milad & Bliemer, Michiel C.J. & Rose, John M. & Oppewal, Harmen & Lancsar, Emily, 2021. "Hypothetical bias in stated choice experiments: Part I. Macro-scale analysis of literature and integrative synthesis of empirical evidence from applied economics, experimental psychology and neuroimag," Journal of choice modelling, Elsevier, vol. 41(C).
    4. Mat Alipiah, Roseliza & Anang, Zuraini & Abdul Rashid, Noorhaslinda Kulub & Smart, James C. R. & Wan Ibrahim, Wan Noorwatie, 2018. "Aquaculturists Preference Heterogeneity towards Wetland Ecosystem Services: A Latent Class Discrete Choice Model," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(2), pages 253-266.
    5. Rambonilaza, Tina, 2005. "Land-use planning and public preferences: What can we learn from choice experiments method?," MPRA Paper 9225, University Library of Munich, Germany, revised May 2007.
    6. de Ayala, Amaia & Hoyos, David & Mariel, Petr, 2015. "Suitability of discrete choice experiments for landscape management under the European Landscape Convention," Journal of Forest Economics, Elsevier, vol. 21(2), pages 79-96.
    7. Richard T. Carson & Miko_aj Czajkowski, 2014. "The discrete choice experiment approach to environmental contingent valuation," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 9, pages 202-235, Edward Elgar Publishing.
    8. Na-na Wang & Liang-guo Luo & Ya-ru Pan & Xue-mei Ni, 2019. "Use of discrete choice experiments to facilitate design of effective environmentally friendly agricultural policies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(4), pages 1543-1559, August.
    9. Vecchiato, D. & Tempesta, T., 2013. "Valuing the benefits of an afforestation project in a peri-urban area with choice experiments," Forest Policy and Economics, Elsevier, vol. 26(C), pages 111-120.
    10. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    11. Kanchanaroek, Yingluk & Termansen, Mette & Quinn, Claire, 2013. "Property rights regimes in complex fishery management systems: A choice experiment application," Ecological Economics, Elsevier, vol. 93(C), pages 363-373.
    12. Su, Jie & Gasparatos, Alexandros, 2024. "Assessing the heterogeneity of public acceptability for mangrove restoration through a choice experiment," Ecological Economics, Elsevier, vol. 218(C).
    13. Christoph Schulze & Katarzyna Zagórska & Kati Häfner & Olimpia Markiewicz & Mikołaj Czajkowski & Bettina Matzdorf, 2024. "Using farmers' ex ante preferences to design agri‐environmental contracts: A systematic review," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(1), pages 44-83, February.
    14. S. Ceolotto & E. Denny, 2024. "Putting a New ‘Spin’ on Energy Information: Measuring the Impact of Reframing Energy Efficiency Information on Tumble Dryer Choices in a Multi-country Experiment," Journal of Consumer Policy, Springer, vol. 47(1), pages 51-108, March.
    15. Hoyos, David, 2010. "The state of the art of environmental valuation with discrete choice experiments," Ecological Economics, Elsevier, vol. 69(8), pages 1595-1603, June.
    16. Chiadmi, Ines & Traoré, Sidnoma Abdoul Aziz & Salles, Jean-Michel, 2020. "Asian tiger mosquito far from home: Assessing the impact of invasive mosquitoes on the French Mediterranean littoral," Ecological Economics, Elsevier, vol. 178(C).
    17. Rulleau, Bénédicte & Dachary-Bernard, Jeanne, 2012. "Preferences, rational choices and economic valuation: Some empirical tests," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(2), pages 198-206.
    18. Castillo-Eguskitza, Nekane & Hoyos, David & Onaindia, Miren & Czajkowski, Mikolaj, 2019. "Unraveling local preferences and willingness to pay for different management scenarios: A choice experiment to biosphere reserve management," Land Use Policy, Elsevier, vol. 88(C).
    19. Feyaerts, Hendrik & Maertens, Miet, 2021. "The Market for Onions or Lemons? Import Substitution and Consumer Preferences in Senegal," 2021 Conference, August 17-31, 2021, Virtual 315170, International Association of Agricultural Economists.
    20. Imamura, Kohei & Takano, Kohei Takenaka & Kumagai, Naoki H. & Yoshida, Yumi & Yamano, Hiroya & Fujii, Masahiko & Nakashizuka, Tohru & Managi, Shunsuke, 2020. "Valuation of coral reefs in Japan: Willingness to pay for conservation and the effect of information," Ecosystem Services, Elsevier, vol. 46(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:lauspo:v:109:y:2021:i:c:s0264837721003574. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joice Jiang (email available below). General contact details of provider: https://www.journals.elsevier.com/land-use-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.