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Farmers' willingness to pay for rehabilitation of degraded natural resources under watershed development in Ethiopia (case study in Dejen Woreda)

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  • Abdrohman Ebrahim

Abstract

This study goes to identify factors that affect farmers' WTP and estimating the TEV. The Bivarite Probit model is used for the estimation of the parameters using 185 sample size. The mean WTP from DBDCV is 28.48 ETH Birr per annum; is higher than the open ended CVM (i.e., 24.8 Birr). The TEV is estimated to be 105,148.16 ETH Birr. Education, fertiliser expenditure and land per capita are statistically significant and positively affecting farmers' WTP. Age is negatively affecting farmers' WTP due to longer time horizon of the returns of soil and water conservation works. The policy should consider farmers' age, fertiliser expenditure and land per capita for proper design of watershed development guidelines. Government should encompass adults' education which has an effect on farmers demand for natural resource conservation in terms of the higher possibility of accepting new technologies and family planning (implicit effects on land per capita.).

Suggested Citation

  • Abdrohman Ebrahim, 2014. "Farmers' willingness to pay for rehabilitation of degraded natural resources under watershed development in Ethiopia (case study in Dejen Woreda)," African Journal of Economic and Sustainable Development, Inderscience Enterprises Ltd, vol. 3(4), pages 273-287.
  • Handle: RePEc:ids:ajesde:v:3:y:2014:i:4:p:273-287
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    Cited by:

    1. Workie, Lamesgin Tebeje, 2017. "Households’ Willingness To Pay For Soil Conservation Practices On Cultivated Land In South Achefer District, Amhara National Regional State Of Ethiopia: A Contingent Valuation Approach," Research Theses 276459, Collaborative Masters Program in Agricultural and Applied Economics.

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