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Nonmarket valuation in developing countries: incorporating labour contributions in environmental benefits estimates

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  • Rajesh K. Rai
  • Helen Scarborough

Abstract

type="main" xml:id="ajar12071-abs-0001"> There are limitations associated with the application of nonmarket valuation techniques, including choice experiments, in subsistence economies. In part, this is due to the concern that using money as a mode of contribution may not capture the potential contribution of low-income households. To address this limitation, respondents in this study were provided with the option of contributing towards the management of invasive plants in labour terms if they were unwilling to contribute in monetary terms. The results show that the existing practice of using dollar values to estimate willingness to contribute may disproportionately exclude the concerns of some groups within the community. The analysis also indicates that allowing respondents to express their willingness to contribute in labour increases their participation in environmental decision-making processes and hence increases the estimated value of forest ecosystem services. This study contributes to the limited empirical literature on the development of nonmarket valuation surveys, particularly choice experiments, in low-income countries in general and rural areas in particular.

Suggested Citation

  • Rajesh K. Rai & Helen Scarborough, 2015. "Nonmarket valuation in developing countries: incorporating labour contributions in environmental benefits estimates," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(4), pages 479-498, October.
    • Handle: RePEc:bla:ajarec:v:59:y:2015:i:4:p:479-498
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    File URL: http://hdl.handle.net/10.1111/ajar.2015.59.issue-4
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    Cited by:

    1. Diriba Abdeta, 2022. "Households' willingness to pay for forest conservation in Ethiopia: A review," Journal of Forest Science, Czech Academy of Agricultural Sciences, vol. 68(11), pages 437-451.
    2. Li, Liqing & Long, Dede, 2022. "Household Preference for Impure Public Goods - an Application of Community Gardens," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322142, Agricultural and Applied Economics Association.
    3. Bhakta Raj Giri & Xie Yi & Pradeep Baral & Ramesh Bikram Bogati, 2018. "Significant Contribution of Community Forests to Users’ Household Income in Far-West Mid-Hill of Nepal," International Journal of Sciences, Office ijSciences, vol. 7(03), pages 36-55, March.
    4. Chaikumbung, Mayula & Doucouliagos, Hristos & Scarborough, Helen, 2019. "Institutions, Culture, and Wetland Values," Ecological Economics, Elsevier, vol. 157(C), pages 195-204.
    5. Meginnis, Keila & Hanley, Nick & Mujumbusi, Lazaaro & Lamberton, Poppy H.L., 2020. "Non-monetary numeraires: Varying the payment vehicle in a choice experiment for health interventions in Uganda," Ecological Economics, Elsevier, vol. 170(C).
    6. J. M. Gibson & D. Rigby & D. A. Polya & N. Russell, 2016. "Discrete Choice Experiments in Developing Countries: Willingness to Pay Versus Willingness to Work," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(4), pages 697-721, December.
    7. Kassahun, Habtamu Tilahun & Jacobsen, Jette Bredahl & Nicholson, Charles F., 2020. "Revisiting money and labor for valuing environmental goods and services in developing countries," Ecological Economics, Elsevier, vol. 177(C).
    8. Rajesh K. Rai & Mani Nepal & Laxmi D. Bhatta & Saudamini Das & Madan S. Khadayat & E. Somanathan & Kedar Baral, 2019. "Ensuring Water Availability to Water Users through Incentive Payment for Ecosystem Services Scheme: A Case Study in a Small Hilly Town of Nepal," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(04), pages 1-26, October.
    9. Roshan Sherchan & Rajesh Kumar Rai & Roshani Rai & Arun Dhakal, 2022. "Designing a community-based insurance scheme to reduce human–wildlife conflict," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5112-5130, April.
    10. 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.
    11. Hagedoorn, Liselotte C. & Koetse, Mark J. & van Beukering, Pieter J.H. & Brander, Luke M., 2021. "Reducing the finance gap for nature-based solutions with time contributions," Ecosystem Services, Elsevier, vol. 52(C).
    12. 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).
    13. Rai, Rajesh Kumar & Shyamsundar, Priya & Nepal, Mani & Bhatta, Laxmi Dutt, 2015. "Differences in demand for watershed services: Understanding preferences through a choice experiment in the Koshi Basin of Nepal," Ecological Economics, Elsevier, vol. 119(C), pages 274-283.
    14. Kocsis, Tamás & Marjainé, Szerényi Zsuzsanna, 2018. "Gazdag szegények. Időráfordítási hajlandóság a környezeti javak értékelésében [The wealthy poor - "willingness to spend time" in evaluating environmental benefits]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1154-1171.
    15. Agúndez, Dolores & Lawali, Sitou & Mahamane, Ali & Alía, Ricardo & Soliño, Mario, 2022. "Development of agroforestry food resources in Niger: Are farmers’ preferences context specific?," World Development, Elsevier, vol. 157(C).
    16. Mani Nepal & Rajesh Kumar Rai & Saudamini Das & Laxmi Dutt Bhatta & Rajan Kotru & Madan Singh Khadayat & Ranbeer Singh Rawal & G. C. S. Negi, 2018. "Valuing Cultural Services of the Kailash Sacred Landscape for Sustainable Management," Sustainability, MDPI, vol. 10(10), pages 1-19, October.
    17. Vondolia, Godwin K. & Navrud, Ståle, 2019. "Are non-monetary payment modes more uncertain for stated preference elicitation in developing countries?," Journal of choice modelling, Elsevier, vol. 30(C), pages 73-87.
    18. Rajesh Kumar Rai & Mani Nepal & Madan Singh Khadayat & Bishal Bhardwaj, 2019. "Improving Municipal Solid Waste Collection Services in Developing Countries: A Case of Bharatpur Metropolitan City, Nepal," Sustainability, MDPI, vol. 11(11), pages 1-17, May.

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