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Forest owners’ willingness to accept compensation for voluntary conservation: A contingent valuation approach

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  • Lindhjem, Henrik
  • Mitani, Yohei

Abstract

To avoid conflicts often associated with mandatory regulations, it is crucial to motivate and incentivize forest owners to participate in voluntary conservation programs. To investigate forest owner preferences and willingness to accept compensation (WTA) to participate, we conduct a contingent valuation survey of non-industrial private forest owners in Norway. We find that WTA is negatively related to the size of the forest holding and absentee ownership, and positively related to the share of the forest classified as productive. The overall mean WTA per year per hectare is estimated at NOK 1800. Costs of reaching conservation goals can be saved by targeting small and relatively less productive forests and absentee owners first, before considering increasingly expensive forest areas. However, this recommendation only holds if desirable biological characteristics are not substantially less likely to be found in such areas. Results are potentially important both for our understanding of forest owner preferences and the costs of voluntary forest conservation schemes currently in use in many countries.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Forest Economics.

Volume (Year): 18 (2012)
Issue (Month): 4 ()
Pages: 290-302

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Handle: RePEc:eee:foreco:v:18:y:2012:i:4:p:290-302

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Related research

Keywords: Forest; Voluntary conservation; Biodiversity; Compensation; Willingness to accept; Contingent valuation;

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References

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  1. Kilgore, Michael A. & Snyder, Stephanie A. & Schertz, Joseph & Taff, Steven J., 2008. "What does it take to get family forest owners to enroll in a forest stewardship-type program?," Forest Policy and Economics, Elsevier, vol. 10(7-8), pages 507-514, October.
  2. David Layton & Juha Siikamäki, 2009. "Payments for Ecosystem Services Programs: Predicting Landowner Enrollment and Opportunity Cost Using a Beta-Binomial Model," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 44(3), pages 415-439, November.
  3. Amigues, Jean-Pierre & Boulatoff (Broadhead), Catherine & Desaigues, Brigitte & Gauthier, Caroline & Keith, John E., 2002. "The benefits and costs of riparian analysis habitat preservation: a willingness to accept/willingness to pay contingent valuation approach," Ecological Economics, Elsevier, vol. 43(1), pages 17-31, November.
  4. Kline, Jeffrey D. & Alig, Ralph J. & Johnson, Rebecca L., 2000. "Forest owner incentives to protect riparian habitat," Ecological Economics, Elsevier, vol. 33(1), pages 29-43, April.
  5. Sullivan, Jay & Amacher, Gregory S. & Chapman, Sara, 2005. "Forest banking and forest landowners forgoing management rights for guaranteed financial returns," Forest Policy and Economics, Elsevier, vol. 7(3), pages 381-392, March.
  6. Juha Siikamäki & David F. Layton, 2007. "Potential Cost-Effectiveness of Incentive Payment Programs for the Protection of Non-Industrial Private Forests," Land Economics, University of Wisconsin Press, vol. 83(4), pages 539-560.
  7. Cathal Buckley & Stephen Hynes & Tom van Rensburg & Edel Doherty, 2009. "Walking in the Irish countryside: landowner preferences and attitudes to improved public access provision," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 52(8), pages 1053-1070.
  8. Jordan F. Suter & Gregory L. Poe & Nelson L. Bills, 2008. "Do Landowners Respond to Land Retirement Incentives? Evidence from the Conservation Reserve Enhancement Program," Land Economics, University of Wisconsin Press, vol. 84(1), pages 17-30.
  9. Beach, Robert H. & Pattanayak, Subhrendu K. & Yang, Jui-Chen & Murray, Brian C. & Abt, Robert C., 2005. "Econometric studies of non-industrial private forest management: a review and synthesis," Forest Policy and Economics, Elsevier, vol. 7(3), pages 261-281, March.
  10. Raunikar, Ronald & Buongiorno, Joseph, 2006. "Willingness to pay for forest amenities: The case of non-industrial owners in the south central United States," Ecological Economics, Elsevier, vol. 56(1), pages 132-143, January.
  11. Gadaud, Juliette & Rambonilaza, Mbolatiana, 2010. "Amenity values and payment schemes for free recreation services from non-industrial private forest properties: A French case study," Journal of Forest Economics, Elsevier, vol. 16(4), pages 297-311, December.
  12. Cameron, Trudy Ann & Huppert, Daniel D., 1989. "OLS versus ML estimation of non-market resource values with payment card interval data," Journal of Environmental Economics and Management, Elsevier, vol. 17(3), pages 230-246, November.
  13. Christian Langpap, 2004. "Conservation Incentives Programs for Endangered Species: An Analysis of Landowner Participation," Land Economics, University of Wisconsin Press, vol. 80(3), pages 375-388.
  14. Vokoun, Melinda & Amacher, Gregory S. & Wear, David N., 2006. "Scale of harvesting by non-industrial private forest landowners," Journal of Forest Economics, Elsevier, vol. 11(4), pages 223-244, January.
  15. Jagannadha R. Matta & Janaki R. R. Alavalapati & D. Evan Mercer, 2009. "Incentives for Biodiversity Conservation Beyond the Best Management Practices: Are Forestland Owners Interested?," Land Economics, University of Wisconsin Press, vol. 85(1), pages 132-143.
  16. Gregory, S. Amacher & Christine Conway, M. & Sullivan, Jay & Gregory, S. Amacher, 2003. "Econometric analyses of nonindustrial forest landowners: Is there anything left to study?," Journal of Forest Economics, Elsevier, vol. 9(2), pages 137-164.
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Cited by:
  1. Rabotyagov, Sergey S. & Lin, Sonja, 2013. "Small forest landowner preferences for working forest conservation contract attributes: A case of Washington State, USA," Journal of Forest Economics, Elsevier, vol. 19(3), pages 307-330.

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