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Non-market Valuation in Developing Countries: Estimating Benefits of Managing Invasive Plants Using Choice a Choice Experiment

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Author Info

  • Rajesh Kumar Rai
  • Helen Scarborough

Abstract

There are limitations associated with the application of non-market 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 contribution 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 non-market valuation surveys, including CEs, in low-income countries in general and rural areas in particular.

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File URL: http://www.deakin.edu.au/buslaw/aef/workingpapers/papers/2012_8.pdf
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Bibliographic Info

Paper provided by Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance in its series Economics Series with number 2012_8.

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Date of creation: 16 Nov 2012
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Handle: RePEc:dkn:econwp:eco_2012_8

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Related research

Keywords: Choice experiments; Willingness to contribute; low-income communities; mode of contribution;

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References

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  1. Nick Hanley & Robert Wright & Vic Adamowicz, 1998. "Using Choice Experiments to Value the Environment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 11(3), pages 413-428, April.
  2. Tilahun, Mesfin & Mathijs, Erik & Muys, Bart & Vranken, Liesbet & Deckers, Jozef A. & Gebregziabher, Kidanemariam & Gebrehiwot, Kindeya & Bauer, Hans, 2011. "Contingent valuation analysis of rural households’ willingness to pay for frankincense forest conservation," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116085, European Association of Agricultural Economists.
  3. Wang, Xuehong & Bennett, Jeff & Xie, Chen & Zhang, Zhitao & Liang, Dan, 2007. "Estimating non-market environmental benefits of the Conversion of Cropland to Forest and Grassland Program: A choice modeling approach," Ecological Economics, Elsevier, vol. 63(1), pages 114-125, June.
  4. Shyamsundar, Priya & Kramer, Randall A., 1996. "Tropical Forest Protection: An Empirical Analysis of the Costs Borne by Local People," Journal of Environmental Economics and Management, Elsevier, vol. 31(2), pages 129-144, September.
  5. Sukanya Das & Rabindra N. Bhattacharya & Ekin Birol, 2009. "Estimating the value of improved wastewater treatment: The case of River Ganga, India," Environmental Economy and Policy Research Working Papers 43.2009, University of Cambridge, Department of Land Economics, revised 2009.
  6. Scarpa, Riccardo & Rose, John M., 2008. "Design efficiency for non-market valuation with choice modelling: how to measure it, what to report and why," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), September.
  7. Bengt Kristrom & Pere Riera, 1996. "Is the income elasticity of environmental improvements less than one?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 7(1), pages 45-55, January.
  8. Angel-Urdinola, Diego & Wodon, Quentin, 2010. "Income Generation and Intra-Household Decision Making: A Gender Analysis for Nigeria," MPRA Paper 27738, University Library of Munich, Germany.
  9. Casey, James F. & Kahn, James R. & Rivas, Alexandre A.F., 2008. "Willingness to accept compensation for the environmental risks of oil transport on the Amazon: A choice modeling experiment," Ecological Economics, Elsevier, vol. 67(4), pages 552-559, November.
  10. Ignacio Schiappacasse & Felipe Vásquez & Laura Nahuelhual & Cristian Echeverría, 2010. "Labor as a Utility Measure in Contingent Valuation: Application to the Valuation of Restoration Projects in Latin America," Working Papers 18-2010, Departamento de Economía, Universidad de Concepción.
  11. Rolfe, John & Bennett, Jeff & Louviere, Jordan, 2000. "Choice modelling and its potential application to tropical rainforest preservation," Ecological Economics, Elsevier, vol. 35(2), pages 289-302, November.
  12. Rai, Rajesh Kumar & Scarborough, Helen, 2013. "Economic value of mitigation of plant invaders in a subsistence economy: incorporating labour as a mode of payment," Environment and Development Economics, Cambridge University Press, vol. 18(02), pages 225-244, April.
  13. Brey, Raul & Riera, Pere & Mogas, Joan, 2007. "Estimation of forest values using choice modeling: An application to Spanish forests," Ecological Economics, Elsevier, vol. 64(2), pages 305-312, December.
  14. Christie, Michael & Hanley, Nick & Hynes, Stephen, 2007. "Valuing enhancements to forest recreation using choice experiment and contingent behaviour methods," Journal of Forest Economics, Elsevier, vol. 13(2-3), pages 75-102, August.
  15. Asquith, Nigel M. & Vargas, Maria Teresa & Wunder, Sven, 2008. "Selling two environmental services: In-kind payments for bird habitat and watershed protection in Los Negros, Bolivia," Ecological Economics, Elsevier, vol. 65(4), pages 675-684, May.
  16. Tanya O’Garra, 2009. "Bequest Values for Marine Resources: How Important for Indigenous Communities in Less-Developed Economies?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 44(2), pages 179-202, October.
  17. Awudu Abdulai & Christopher L. Delgado, 1999. "Determinants of Nonfarm Earnings of Farm-Based Husbands and Wives in Northern Ghana," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 117-130.
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