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The application of contingent valuation method to community-led financing schemes: evidence from rural cameroon

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  • William M. Fonta
  • H. Eme Ichoku

    (University of Nigeria Nsukka, Nigeria
    University of Nigeria Nsukka, Nigeria)

Abstract

A key decision problem facing several programme officers of many donor agencies in developing countries like Cameroon, is how to price intended financing schemes for community participation. This paper provides further evidence on how useful the contingent valuation method (CVM) can be for such pricing decision problems facing these organizations. In this regard, a case study was conducted by a non-governmental organization(NGO) to elicit the willingness-to-pay (WTP) values, for an intended community-based financing scheme aimed, at introducing new variety of fish species (Tilapia nilotica and Heterotis niloticus) into the Bamendjim dam reservoir located in the Ndop area of the Northwest Province of Cameroon for long-term fish productivity. To assess the theoretical underpinning of the study, we used a censored Tobit model . The results show that factors such as household income, the level of education attained by household heads, occupational status of household heads, payment mechanism and the hypothetical prices used in the elicitation format (referendum format) can influence the propensity of community members to pay more for such a proposed scheme. However, the study recommends that it would be important for NGOís to compare the CVM results with the actual cost of financing the schemes.

Suggested Citation

  • William M. Fonta & H. Eme Ichoku, 2005. "The application of contingent valuation method to community-led financing schemes: evidence from rural cameroon," Journal of Developing Areas, Tennessee State University, College of Business, vol. 39(1), pages 109-126, September.
    • Handle: RePEc:jda:journl:vol.39:year:2005:issue1:pp:109-126
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    Citations

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    Cited by:

    1. Eugene Ezebilo, 2014. "Maintenance of public amenity to improve access to nature area: does distance and expected economic benefits matter?," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 4(3), pages 240-249, September.
    2. Dikgang, Johane & Muchapondwa, Edwin, 2012. "The valuation of biodiversity conservation by the South African Khomani San “bushmen” community," Ecological Economics, Elsevier, vol. 84(C), pages 7-14.
    3. William Fonta & H. Ichoku & Jane Kabubo-Mariara, 2010. "The effect of protest zeros on estimates of willingness to pay in healthcare contingent valuation analysis," Applied Health Economics and Health Policy, Springer, vol. 8(4), pages 225-237, July.
    4. Mohammad Rashid & Debapratim Pandit, 2019. "Analysis of service quality of household toilets expected by households practicing open defecation: a study in rural settlements of Bihar, India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(5), pages 2487-2506, October.
    5. Hyacinth Ichoku & William Fonta & Abbi Kedir, 2009. "Measuring individuals’ valuation distributions using a stochastic payment card approach: application to solid waste management in Nigeria," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 11(3), pages 509-521, June.
    6. repec:aer:wpaper:210 is not listed on IDEAS

    More about this item

    Keywords

    Contingent Valuation Method; Willingness to Pay; Community-Based Finance; Community Financing Price; Fish Species; Poverty Alleviation Schemes.110 William M. Fonta; H. Eme Ichoku;
    All these keywords.

    JEL classification:

    • G13 - Financial Economics - - General Financial Markets - - - Contingent Pricing; Futures Pricing
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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