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Forest owners’ willingness to accept compensation for voluntary conservation: A contingent valuation approach

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  • Lindhjem, Henrik
  • Mitani, Yohei

Abstract

To avoid conflicts often associated with mandatory regulations, it is crucial to motivate and incentivize forest owners to participate in voluntary conservation programs. To investigate forest owner preferences and willingness to accept compensation (WTA) to participate, we conduct a contingent valuation survey of non-industrial private forest owners in Norway. We find that WTA is negatively related to the size of the forest holding and absentee ownership, and positively related to the share of the forest classified as productive. The overall mean WTA per year per hectare is estimated at NOK 1800. Costs of reaching conservation goals can be saved by targeting small and relatively less productive forests and absentee owners first, before considering increasingly expensive forest areas. However, this recommendation only holds if desirable biological characteristics are not substantially less likely to be found in such areas. Results are potentially important both for our understanding of forest owner preferences and the costs of voluntary forest conservation schemes currently in use in many countries.

Suggested Citation

  • Lindhjem, Henrik & Mitani, Yohei, 2012. "Forest owners’ willingness to accept compensation for voluntary conservation: A contingent valuation approach," Journal of Forest Economics, Elsevier, vol. 18(4), pages 290-302.
  • Handle: RePEc:eee:foreco:v:18:y:2012:i:4:p:290-302
    DOI: 10.1016/j.jfe.2012.06.004
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    References listed on IDEAS

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    Cited by:

    1. Guo, Huanhuan & Li, Bo & Hou, Ying & Lu, Shubing & Nan, Bo, 2014. "Rural households' willingness to participate in the Grain for Green program again: A case study of Zhungeer, China," Forest Policy and Economics, Elsevier, vol. 44(C), pages 42-49.
    2. Brouwer, Roy & Lienhoop, Nele & Oosterhuis, Frans, 2015. "Incentivizing afforestation agreements: Institutional-economic conditions and motivational drivers," Journal of Forest Economics, Elsevier, vol. 21(4), pages 205-222.
    3. repec:eee:ecolec:v:147:y:2018:i:c:p:333-342 is not listed on IDEAS
    4. Khanal, Puskar N. & Grebner, Donald L. & Munn, Ian A. & Grado, Stephen C. & Grala, Robert K. & Henderson, James E., 2017. "Evaluating non-industrial private forest landowner willingness to manage for forest carbon sequestration in the southern United States," Forest Policy and Economics, Elsevier, vol. 75(C), pages 112-119.
    5. Ildephonse, Musafili & Oluoch-Kosura, Willis & Otieno, Jakinda, 2016. "Assessing the value farmers attach to Volcanoes National Park management atrtributes in Rwanda: a choice experiment approach," 2016 AAAE Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246273, African Association of Agricultural Economists (AAAE).
    6. Håbesland, Daniel E. & Kilgore, Michael A. & Becker, Dennis R. & Snyder, Stephanie A. & Solberg, Birger & Sjølie, Hanne K. & Lindstad, Berit H., 2016. "Norwegian family forest owners' willingness to participate in carbon offset programs," Forest Policy and Economics, Elsevier, vol. 70(C), pages 30-38.
    7. Zhou, Li & Lei, Lei, 2017. "Can money always talk? : implication for environmental compensation by international agribusiness," IDE Discussion Papers 641, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    8. Oviedo, José L. & Caparrós, Alejandro, 2015. "Information and visual attention in contingent valuation and choice modeling: field and eye-tracking experiments applied to reforestations in Spain," Journal of Forest Economics, Elsevier, vol. 21(4), pages 185-204.
    9. Yu, Bing & Xu, Linyu, 2016. "Review of ecological compensation in hydropower development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 729-738.
    10. Rabotyagov, Sergey S. & Lin, Sonja, 2013. "Small forest landowner preferences for working forest conservation contract attributes: A case of Washington State, USA," Journal of Forest Economics, Elsevier, vol. 19(3), pages 307-330.
    11. repec:eee:foreco:v:30:y:2018:i:c:p:1-12 is not listed on IDEAS

    More about this item

    Keywords

    Forest; Voluntary conservation; Biodiversity; Compensation; Willingness to accept; Contingent valuation;

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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