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Contingent valuation analysis of rural households’ willingness to pay for frankincense forest conservation

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Author Info

  • Tilahun, Mesfin
  • Mathijs, Erik
  • Muys, Bart
  • Vranken, Liesbet
  • Deckers, Jozef A.
  • Gebregziabher, Kidanemariam
  • Gebrehiwot, Kindeya
  • Bauer, Hans

Abstract

Frankincense from Boswellia papyrifera forest (BPF) is a traded non timber forest product (NTFP) used in pharmaceutical, food, cosmetic and chemical industries. However, the resource in northeastern Africa is under continuous degradation and requires conservation measures. Data from a discrete choice contingent valuation study are used to assess the factors influencing rural households’ willingness to pay (WTP) and willingness to contribute labor (WTCL) for BPF conservation in Ethiopia. The standard probit, bivariate probit and interval data models were used for modeling respondents’ WTP and WTCL. We found household income as the most important factor affecting WTP whereas number of household labor is the most important factor affecting WTCL. Mean lower bound annual WTP of US$ 4.68 and WTCL of 7.03 days per household were estimated. This study indicated that despite Ethiopia is a low income country, people are willing to contribute for conservation of the resource.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 116085.

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Date of creation: 2011
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Handle: RePEc:ags:eaae11:116085

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Keywords: Willingness to pay; Boswellia papyrifera; Conservation; Contingent valuation; Resource /Energy Economics and Policy;

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  1. Champ, Patricia A. & Bishop, Richard C. & Brown, Thomas C. & McCollum, Daniel W., 1997. "Using Donation Mechanisms to Value Nonuse Benefits from Public Goods," Journal of Environmental Economics and Management, Elsevier, vol. 33(2), pages 151-162, June.
  2. Cameron Trudy Ann & Quiggin John, 1994. "Estimation Using Contingent Valuation Data from a Dichotomous Choice with Follow-Up Questionnaire," Journal of Environmental Economics and Management, Elsevier, vol. 27(3), pages 218-234, November.
  3. Trudy Ann Cameron & Michelle D. James, 1986. "Efficient Estimation Methods for "Closed-Ended" Contingent Valuation Surveys," UCLA Economics Working Papers 404, UCLA Department of Economics.
  4. Boyle, Kevin J. & Welsh, Michael P. & Bishop, Richard C., 1988. "Validation of empirical measures of welfare change: comment," MPRA Paper 31237, University Library of Munich, Germany.
  5. Arnold, J. E. Michael & Perez, M. Ruiz, 2001. "Can non-timber forest products match tropical forest conservation and development objectives?," Ecological Economics, Elsevier, vol. 39(3), pages 437-447, December.
  6. Brian Belcher & Kathrin Schreckenberg, 2007. "Commercialisation of Non-timber Forest Products: A Reality Check," Development Policy Review, Overseas Development Institute, vol. 25(3), pages 355-377, 05.
  7. Joseph Cooper & John Loomis, 1992. "Sensitivity of Willingness-to-Pay Estimates to Bid Design in Dichotomous Choice Contingent Valuation Models," Land Economics, University of Wisconsin Press, vol. 68(2), pages 211-224.
  8. Cooper Joseph C., 1993. "Optimal Bid Selection for Dichotomous Choice Contingent Valuation Surveys," Journal of Environmental Economics and Management, Elsevier, vol. 24(1), pages 25-40, January.
  9. Jin, Jianjun & Wang, Zhishi & Liu, Xuemin, 2008. "Valuing black-faced spoonbill conservation in Macao: A policy and contingent valuation study," Ecological Economics, Elsevier, vol. 68(1-2), pages 328-335, December.
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Cited by:
  1. Rajesh Kumar Rai & Helen Scarborough, 2012. "Non-market Valuation in Developing Countries: Estimating Benefits of Managing Invasive Plants Using Choice a Choice Experiment," Economics Series 2012_8, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  2. Thierry Kalisa, 2014. "Rural Electrification in Rwanda: A Measure of Willingness to Contribute Time and Money," Working Papers 1413, Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure.
  3. Thierry Kalisa, 2013. "Rural Electrification in Rwanda : A Measure of Willingness to Contribute Time and Money," Working Papers halshs-00963525, HAL.

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