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Contingent valuation analysis of rural households’ willingness to pay for frankincense forest conservation

Author

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  • Tilahun, Mesfin
  • Mathijs, Erik
  • Muys, Bart
  • Vranken, Liesbet
  • Deckers, Jozef A.
  • Gebregziabher, Kidanemariam
  • Gebrehiwot, Kindeya
  • Bauer, Hans

Abstract

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.

Suggested Citation

  • Tilahun, Mesfin & Mathijs, Erik & Muys, Bart & Vranken, Liesbet & Deckers, Jozef A. & Gebregziabher, Kidanemariam & Gebrehiwot, Kindeya & Bauer, Hans, 2011. "Contingent valuation analysis of rural households’ willingness to pay for frankincense forest conservation," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 116085, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae11:116085
    DOI: 10.22004/ag.econ.116085
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    1. AHMED, Musa H. & MELESSE, Kumilachew A. & TEREFE, Aemro T., 2015. "Valuing Soil Conservation Practices Using Contingent Valuation Technique: Evidence From The Central Rift Valley Of Ethiopia," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 18(2), pages 1-11, October.
    2. Lankia, Tuija & Neuvonen, Marjo & Pouta, Eija & Sievänen, Tuija, 2014. "Willingness to contribute to the management of recreational quality on private lands in Finland," Journal of Forest Economics, Elsevier, vol. 20(2), pages 141-160.
    3. Thierry Kalisa, 2014. "Rural Electrification in Rwanda: A Measure of Willingness to Contribute Time and Money," Working Papers 1413, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    4. Nguyen, Hanh Tien & Ariyawardana, Anoma & Ratnasiri, Shyama, 2020. "Forest plantation owners' willingness to pay for hybrid nursery stock: The case of Acacia hybrids in Central Vietnam," Forest Policy and Economics, Elsevier, vol. 116(C).
    5. Thierry Kalisa, 2013. "Rural Electrification in Rwanda : A Measure of Willingness to Contribute Time and Money," Working Papers halshs-00963525, HAL.

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