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Determinants of Farmers’ Willingness to Pay and Its Level for Ecological Compensation of Poyang Lake Wetland, China: A Household-Level Survey

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  • Fanbin Kong

    (Institute of Poyang Lake Eco-economics, Jiangxi University of Finance and Economics, Nanchang 330032, China)

  • Kai Xiong

    (Institute of Poyang Lake Eco-economics, Jiangxi University of Finance and Economics, Nanchang 330032, China)

  • Ning Zhang

    (Institute of Poyang Lake Eco-economics, Jiangxi University of Finance and Economics, Nanchang 330032, China)

Abstract

This study examines the determinants of farmers’ willingness to pay (WTP) and their payment levels for ecological compensation of the Poyang Lake Wetland in China. We developed a farmer household survey and gathered 292 effective responses. The contingent valuation method (CVM) and Heckman’s two-step model were employed for the empirical study. Results show that 46.58% of farmers are willing to pay ecological compensation, with an average price of $64.39/household per year. The influencing factors that significantly influence farmers’ WTP include household income, residential location, emphasis on improvement of wetland resources, arable land area, and contracted water area. In addition, household income, residential location, arable land area, and contracted water area are significantly related to their payment levels. The results of this empirical study inform important policy implications and recommendations.

Suggested Citation

  • Fanbin Kong & Kai Xiong & Ning Zhang, 2014. "Determinants of Farmers’ Willingness to Pay and Its Level for Ecological Compensation of Poyang Lake Wetland, China: A Household-Level Survey," Sustainability, MDPI, vol. 6(10), pages 1-15, September.
  • Handle: RePEc:gam:jsusta:v:6:y:2014:i:10:p:6714-6728:d:40763
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    2. Jonathan Darkwah Baffoe & Takeshi Mizunoya & Helmut Yabar, 2021. "Determinants of Rice Farmers’ Willingness to Pay for Conservation and Sustainable Use of Swampy Wetlands in Ghana’s Northern and Ashanti Regions," Agriculture, MDPI, vol. 11(6), pages 1-18, May.
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    4. Ji Feng & Zheng Zhao & Yali Wen & Yilei Hou, 2021. "Organically Linking Green Development and Ecological Environment Protection in Poyang Lake, China Using a Social-Ecological System (SES) Framework," IJERPH, MDPI, vol. 18(5), pages 1-23, March.
    5. Kai Xiong & Ning Zhang & Chih-Chun Kung & Fanbin Kong, 2019. "Determinants of Residents’ Willingness to Accept and Their Levels for Ecological Conservation in Ganjiang River Basin, China: An Empirical Analysis of Survey Data for 677 Households," Sustainability, MDPI, vol. 11(21), pages 1-18, November.
    6. Yaofeng Yang & Yajuan Chen & Zhenrong Yu & Pengyao Li & Xuedong Li, 2020. "How Does Improve Farmers’ Attitudes toward Ecosystem Services to Support Sustainable Development of Agriculture? Based on Environmental Kuznets Curve Theory," Sustainability, MDPI, vol. 12(20), pages 1-16, October.
    7. Seul-Ye Lim & Se-Jun Jin & Seung-Hoon Yoo, 2017. "The Economic Benefits of the Dokdo Seals Restoration Project in Korea: A Contingent Valuation Study," Sustainability, MDPI, vol. 9(6), pages 1-15, June.
    8. Hyo-Jin Kim & Seul-Ye Lim & Seung-Hoon Yoo, 2017. "The Convenience Benefits of the District Heating System over Individual Heating Systems in Korean Households," Sustainability, MDPI, vol. 9(8), pages 1-12, August.
    9. Yongrok Choi & Ning Zhang, 2015. "Introduction to the Special Issue on “the Sustainable Asia Conference 2014”," Sustainability, MDPI, vol. 7(2), pages 1-8, February.
    10. Sun, Chuanwang & Yuan, Xiang & Yao, Xin, 2016. "Social acceptance towards the air pollution in China: Evidence from public's willingness to pay for smog mitigation," Energy Policy, Elsevier, vol. 92(C), pages 313-324.
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    12. Fei Wang & Degang Yang & Changjian Wang & Xinhuan Zhang, 2015. "The Effect of Payments for Ecosystem Services Programs on the Relationship of Livelihood Capital and Livelihood Strategy among Rural Communities in Northwestern China," Sustainability, MDPI, vol. 7(7), pages 1-21, July.
    13. Yanyun Zhao & Yongzhi Yan & Qingfu Liu & Frank Yonghong Li, 2018. "How Willing Are Herders to Participate in Carbon Sequestration and Mitigation? An Inner Mongolian Grassland Case," Sustainability, MDPI, vol. 10(8), pages 1-10, August.
    14. Yuheng Yang & Xi Zhang & Leran Chang & Yufei Cheng & Shengle Cao, 2018. "A Method of Evaluating Ecological Compensation Under Different Property Rights and Stages: A Case Study of the Xiaoqing River Basin, China," Sustainability, MDPI, vol. 10(3), pages 1-14, February.
    15. Gautam, Tej K. & Paudel, Krishna P. & Guidry, Kurt M., 2017. "Willingness To Pay For Irrigation Water In Louisiana," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252821, Southern Agricultural Economics Association.

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