Contingent valuation analysis of rural households’ willingness to pay for frankincense forest conservation
Frankincense from Boswellia papyrifera forest (BPF) is a traded non timber forest product (NTFP) used in pharmaceutical, food, cosmetic and chemical industries. However, the resource in northeastern Africa is under continuous degradation and requires conservation measures. Data from a discrete choice contingent valuation study are used to assess the factors influencing rural households’ willingness to pay (WTP) and willingness to contribute labor (WTCL) for BPF conservation in Ethiopia. The standard probit, bivariate probit and interval data models were used for modeling respondents’ WTP and WTCL. We found household income as the most important factor affecting WTP whereas number of household labor is the most important factor affecting WTCL. Mean lower bound annual WTP of US$ 4.68 and WTCL of 7.03 days per household were estimated. This study indicated that despite Ethiopia is a low income country, people are willing to contribute for conservation of the resource.
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