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Contingent valuation of community plantations in Ethiopia: a look into value elicitation formats and intra-household preference variations

Author

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  • Carlsson, Fredrik

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Köhlin, Gunnar

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Mekonnen, Alemu

    (Department of Economics, Addis Ababa University, Ethiopia; and Environmental Economics Policy Forum for Ethiopia)

Abstract

This paper is an application of the contingent valuation method on community plantations in the highlands of Ethiopia. A discrete-continuous elicitation format was applied. It was found that there is a problem in applying a closed ended elicitation format in this context with a community resource since a community resource typically implies a community based scenario and such a scenario invites to yea-saying. The wellknown problem of compliance bias is also difficult to avoid in such settings. Application of a closed-ended format under such circumstances would exaggerate the willingness to pay for the good in question. The study asked both spouses in a household for their willingness to pay for a new plantation. The analysis of the bid function shows that there are gender variations in the factors that affect the bids. The common preference model was thus rejected in this application. The analysis also indicates that it might be a good idea to concentrate plantation efforts since there seem to be specialization going on in collection behavior. Women in villages without any existing community plantation are, however, significantly more interested in the establishment of a plantation than men. The aggregate willingness to pay vary dramatically between villages pointing at the need for good selection methods in targeting such interventions.

Suggested Citation

  • Carlsson, Fredrik & Köhlin, Gunnar & Mekonnen, Alemu, 2004. "Contingent valuation of community plantations in Ethiopia: a look into value elicitation formats and intra-household preference variations," Working Papers in Economics 151, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0151
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    File URL: http://hdl.handle.net/2077/2752
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    References listed on IDEAS

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    10. Patricia Champ & Richard Bishop, 2001. "Donation Payment Mechanisms and Contingent Valuation: An Empirical Study of Hypothetical Bias," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(4), pages 383-402, August.
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    Cited by:

    1. Gidey Kidu Mezgebo & Teklay Negash Gebrezgiabher & Metkel Aregay Gebreyesus & Kidane Tesfay Gebrezgiabher & Leake Gebreslassie Weldegiwergis & Haileslasie Gebrezgiabher Hailu, 2022. "Impact of community-based exclosure to smallholder farmers’ livelihood and their willingness to pay: empirical evidences from Tigrai, Ethiopia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 2598-2615, February.
    2. Gelo, Dambala & Koch, Steven F., 2012. "Does one size fit all? Heterogeneity in the valuation of community forestry programs," Ecological Economics, Elsevier, vol. 74(C), pages 85-94.
    3. Dambala Gelo & Steven F. Koch, 2011. "Contingent Valuation of Community Forestry Programs in Ethiopia: Observing Preference Anomalies in Double-Bounded CVM," Working Papers 201124, University of Pretoria, Department of Economics.
    4. Mekonnen, Alemu & Damte, Abebe, 2011. "Private Trees as Household Assets and Determinants of Tree-Growing Behavior in Rural Ethiopia," RFF Working Paper Series dp-11-14-efd, Resources for the Future.
    5. Gelo, Dambala & Koch, Steven F., 2015. "Contingent valuation of community forestry programs in Ethiopia: Controlling for preference anomalies in double-bounded CVM," Ecological Economics, Elsevier, vol. 114(C), pages 79-89.
    6. MEZGEBO, Alem & GETA, Endrias & ZELEKE, Fresenbet, 2016. "Urban Freshwater Users Willingness To Pay For Upland Degraded Watershed Management: The Case Of Dechatu In Dire Dawa Administration, Ethiopia," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 19(1), pages 1-8, March.
    7. Geta, Endrias & Mezgebo, Alem & Zeleke, Fresenbet, 2015. "Economic valuation of improved management of Dechatu drainage basin in Dire Dawa Administration, Ethiopia," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 117(3), pages 1-8, December.
    8. Justin Visagie & Dorrit Posel, 2013. "A reconsideration of what and who is middle class in South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 30(2), pages 149-167, June.
    9. Nathan Morrow & Luca Salvati & Andrea Colantoni & Nancy Mock, 2018. "Rooting the Future; On-Farm Trees’ Contribution to Household Energy Security and Asset Creation as a Resilient Development Pathway—Evidence from a 20-Year Panel in Rural Ethiopia," Sustainability, MDPI, vol. 10(12), pages 1-24, December.

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    More about this item

    Keywords

    Community plantation; Common preference model; Contingent valuation;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry

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