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Contingent valuation of community plantations in Ethiopia: a look into value elicitation formats and intra-household preference variations

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Author Info

  • Carlsson, Fredrik

    ()
    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Köhlin, Gunnar

    ()
    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Mekonnen, Alemu

    ()
    (Department of Economics, Addis Ababa University, Ethiopia; and Environmental Economics Policy Forum for Ethiopia)

Abstract

This paper is an application of the contingent valuation method on community plantations in the highlands of Ethiopia. A discrete-continuous elicitation format was applied. It was found that there is a problem in applying a closed ended elicitation format in this context with a community resource since a community resource typically implies a community based scenario and such a scenario invites to yea-saying. The wellknown problem of compliance bias is also difficult to avoid in such settings. Application of a closed-ended format under such circumstances would exaggerate the willingness to pay for the good in question. The study asked both spouses in a household for their willingness to pay for a new plantation. The analysis of the bid function shows that there are gender variations in the factors that affect the bids. The common preference model was thus rejected in this application. The analysis also indicates that it might be a good idea to concentrate plantation efforts since there seem to be specialization going on in collection behavior. Women in villages without any existing community plantation are, however, significantly more interested in the establishment of a plantation than men. The aggregate willingness to pay vary dramatically between villages pointing at the need for good selection methods in targeting such interventions.

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File URL: http://hdl.handle.net/2077/2752
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 151.

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Length: 24 pages
Date of creation: 18 Nov 2004
Date of revision:
Handle: RePEc:hhs:gunwpe:0151

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Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Keywords: Community plantation; Common preference model; Contingent valuation;

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  1. Bengt Kriström, 1993. "Comparing continuous and discrete contingent valuation questions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 3(1), pages 63-71, February.
  2. Gebremedhin, Berhanu & Pender, John & Tesfay, Girmay, 2003. "Community natural resource management: the case of woodlots in Northern Ethiopia," Environment and Development Economics, Cambridge University Press, vol. 8(01), pages 129-148, February.
  3. Richard Carson & Theodore Groves, 2007. "Incentive and informational properties of preference questions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 37(1), pages 181-210, May.
  4. Jagger, Pamela & Pender, John L., 2000. "The role of trees for sustainable management of less-favored lands: the case of eucalyptus in Ethiopia," EPTD discussion papers 65, International Food Policy Research Institute (IFPRI).
  5. Butler, J S & Moffitt, Robert, 1982. "A Computationally Efficient Quadrature Procedure for the One-Factor Multinomial Probit Model," Econometrica, Econometric Society, vol. 50(3), pages 761-64, May.
  6. Cameron, Trudy Ann, 1988. "A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 355-379, September.
  7. Hoben, Allan, 1995. "Paradigms and politics: The cultural construction of environmental policy in Ethiopia," World Development, Elsevier, vol. 23(6), pages 1007-1021, June.
  8. 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.
  9. Patricia Champ & Richard Bishop, 2001. "Donation Payment Mechanisms and Contingent Valuation: An Empirical Study of Hypothetical Bias," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 19(4), pages 383-402, August.
  10. K hlin, Gunnar, 2001. "Contingent valuation in project planning and evaluation: the case of social forestry in Orissa, India," Environment and Development Economics, Cambridge University Press, vol. 6(02), pages 237-258, May.
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Cited by:
  1. Dambala Gelo & Steven F. Koch, 2011. "Contingent Valuation of Community Forestry Programs in Ethiopia: Observing Preference Anomalies in Double-Bounded CVM," Working Papers 201124, University of Pretoria, Department of Economics.
  2. Mekonnen, Alemu & Damte, Abebe, 2011. "Private Trees as Household Assets and Determinants of Tree-Growing Behavior in Rural Ethiopia," Discussion Papers dp-11-14-efd, Resources For the Future.
  3. Gelo, Dambala & Koch, Steven F., 2012. "Does one size fit all? Heterogeneity in the valuation of community forestry programs," Ecological Economics, Elsevier, vol. 74(C), pages 85-94.
  4. Justin Visagie & Dorrit Posel, 2011. "A reconsideration of what and who is middle class in South Africa," Working Papers 249, Economic Research Southern Africa.

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