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The Economic Valuation of Dryland Ecosystem Services in the South African Kgalagadi by the Local Communities

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  • Dikgang, Johane
  • Muchapondwa, Edwin

Abstract

This study seeks to value ecosystem services in the Kgalagadi area in South Africa by applying the choice experiment technique. The values placed on dryland ecosystem services by indigenous communities are estimated using a conditional logit model, a random parameter logit model and a random parameter logit model with interactions. The results show that local communities would prefer increased grazing, firewood collection, hunting opportunities, and harvesting of medicinal plants. Classification-JEL: separated by commas

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Paper provided by Resources For the Future in its series Discussion Papers with number dp-13-15-efd.

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Handle: RePEc:rff:dpaper:dp-13-15-efd

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Keywords: choice experiment; conditional logit; ecosystem services; local communities; random parameter logit Creation-Date: 2013-12-27;

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  1. Arne Hole & Julie Kolstad, 2012. "Mixed logit estimation of willingness to pay distributions: a comparison of models in preference and WTP space using data from a health-related choice experiment," Empirical Economics, Springer, vol. 42(2), pages 445-469, April.
  2. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
  3. Daniel McFadden, 1986. "The Choice Theory Approach to Market Research," Marketing Science, INFORMS, vol. 5(4), pages 275-297.
  4. Carlsson, Fredrik & Kataria, Mitesh, 2006. "Assessing management options for weed control with demanders and non-demanders in a choice experiment," Working Papers in Economics 208, University of Gothenburg, Department of Economics.
  5. D. McFadden & J. Hausman, 1981. "Specification Tests for the Multinominal Logit Model," Working papers 292, Massachusetts Institute of Technology (MIT), Department of Economics.
  6. Johane Dikgang and Edwin Muchapondwa, 2013. "The Economic Evaluation of Dryland Ecosystem Services in the South African Kgalagadi Area and Implications for PES Involving the Khomani San," Working Papers 384, Economic Research Southern Africa.
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