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

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  • Johane Dikgang and Edwin Muchapondwa

Abstract

This study seeks to value ecosystem services in the Kgalagadi area by applying the Choice Experiment technique. The values placed on dryland ecosystem services by indigenous communities are estimated using a Conditional Logit model, Random Parameter Logit model and a Random Parameter Logit model with interactions. The results show that local communities would prefer getting increased grazing firewood collection, hunting opportunities and harvesting of medicinal plants.

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File URL: http://www.econrsa.org/node/798
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Bibliographic Info

Paper provided by Economic Research Southern Africa in its series Working Papers with number 383.

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Length: 23 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:rza:wpaper:383

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Keywords: choice experiment; conditional logit; ecosystem services; local communities; random parameter logit;

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  1. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, Econometric Society, vol. 52(5), pages 1219-40, September.
  2. Fredrik Carlsson & Mitesh Kataria, 2008. "Assessing Management Options for Weed Control with Demanders and Non-Demanders in a Choice Experiment," Land Economics, University of Wisconsin Press, vol. 84(3), pages 517-528.
  3. 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, Springer, vol. 42(2), pages 445-469, April.
  4. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
  5. 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.
  6. Daniel McFadden, 1986. "The Choice Theory Approach to Market Research," Marketing Science, INFORMS, INFORMS, vol. 5(4), pages 275-297.
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