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Linking Forest to Faucets in a Distant Municipal Area: Public Support for Forest Restoration and Water Security in Albuquerque, New Mexico

Author

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  • Dadhi Adhikari

    (Department of Economics, University of New Mexico, Albuquerque, NM 87131, USA)

  • Jennifer A. Thacher

    (Department of Economics, University of New Mexico, Albuquerque, NM 87131, USA)

  • Janie M. Chermak

    (Department of Economics, University of New Mexico, Albuquerque, NM 87131, USA)

  • Robert P. Berrens

    (Department of Economics, University of New Mexico, Albuquerque, NM 87131, USA)

Abstract

Reducing wildfire risk through forest restoration is vital for the sustainability of watersheds and the human systems that depend upon them. However, identifying public support and securing necessary funding to cover restoration costs is an important implementation challenge. Payment for ecosystem services models may help meet restoration objectives. While examples exist that show how funds can be generated from the public living near forestlands, an unresolved issue is whether households in a relatively distant municipal area would significantly support wildfire risk reduction efforts. This is an important issue as distant households often receive benefits from wildfire risk reductions, such as water source protection for municipal drinking water supply. The objective of this paper is to analyze survey-based contingent valuation data to investigate public support among urban Albuquerque, New Mexico (NM) households for restoration of a watershed that impacts the urban water supply security, but is spatially removed from the urban area. Econometric results show evidence of both significant public support for forest restoration-linking forests to faucets- and the importance of accounting for respondent uncertainty. The latter involves both: (i) uncertainty in the preferences for water security as an important collectively provided good (“preference uncertainty”); and (ii) uncertainty in the possibility that restoration activities across a forested landscape or watershed might actually deliver improved water security (“delivery uncertainty”). Econometric estimation results from a Double Hurdle model indicate a mean annual household willingness to pay (WTP) of US$64.44 (with a 95% of confidence interval of US$61.57–US$67.31), and corresponding median WTP of US$37.76 (US$36.16–US$39.37), for forest restoration that reduces wildfire risk and provides water source protection.

Suggested Citation

  • Dadhi Adhikari & Jennifer A. Thacher & Janie M. Chermak & Robert P. Berrens, 2017. "Linking Forest to Faucets in a Distant Municipal Area: Public Support for Forest Restoration and Water Security in Albuquerque, New Mexico," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(01), pages 1-34, January.
  • Handle: RePEc:wsi:wepxxx:v:03:y:2017:i:01:n:s2382624x16500193
    DOI: 10.1142/S2382624X16500193
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    2. Davies, Helen J. & Wu, Hangjian & Schaafsma, Marije, 2023. "Willingness-to-pay for urban ecosystem services provision under objective and subjective uncertainty," Resource and Energy Economics, Elsevier, vol. 71(C).
    3. Moritz A. Drupp & Zachary M. Turk & Ben Groom & Jonas Heckenhahn, 2024. "Limited Substitutability, Relative Price Changes and the Uplifting of Public Natural Capital Values," CESifo Working Paper Series 11156, CESifo.
    4. Alfred Appiah & Wiktor Adamowicz & Patrick Lloyd-Smith & Diane Dupont, 2019. "Reliability of Drinking Water: Risk Perceptions and Economic Value," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(02), pages 1-27, April.
    5. Bastola, Sapana & Penn, Jerrod & Blazier, Michael, 2022. "Assessing Hypothetical Bias in Nudging: Willingness to Pay for Consultation towards Improved Forest Management," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322477, Agricultural and Applied Economics Association.

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