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Estimates of willingness to accept compensation to manage pine stands for ecosystem services

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  • Mutandwa, Edward
  • Grala, Robert K.
  • Petrolia, Daniel R.

Abstract

Many ecosystem services are often overlooked in active management of private forests leading to their production below the levels preferred by the society. This study used the contingent valuation method (CVM) to estimate willingness to accept (WTA) compensation for managing a hypothetical tract of loblolly pine (Pinus taeda) for multiple ecosystem services. The CVM scenario involved four forest management alternatives representing increasing levels of forest management restrictions. A structural random effects probit model was constructed to quantify WTA compensation amounts. Mean WTA estimates ranged from $190.22 to $595.23 per hectare (ha) per year and increased with the intensity of forest management restrictions. Based on the WTA estimates, the total cost of increasing ecosystem production ranged from $0.88 to $4.76 billion per year. Increased budgets and private partnerships might be needed to implement forest management regimes facilitating multiple ecosystem services.

Suggested Citation

  • Mutandwa, Edward & Grala, Robert K. & Petrolia, Daniel R., 2019. "Estimates of willingness to accept compensation to manage pine stands for ecosystem services," Forest Policy and Economics, Elsevier, vol. 102(C), pages 75-85.
    • Handle: RePEc:eee:forpol:v:102:y:2019:i:c:p:75-85
    DOI: 10.1016/j.forpol.2019.03.001
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