Households' willingness to pay for soil conservation on communal lands: application of the contingent valuation method in north eastern Ethiopia

G. Belay, M. Ketema, M. Hasen

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    Abstract

    Currently, soil erosion is one of the most serious environmental problems in Ethiopia. Therefore, this study was initiated with the objective of examining the determinants of households' willingness to pay (WTP) for soil conservation practice on communal lands and to estimate the aggregate welfare gain of the proposed conservation program in the study area. A multi-stage sampling technique was employed to select the target respondents. A double bounded contingent valuation survey with an open-ended follow-up question was conducted on 245 randomly selected rural households. A Bivariate probit model was used. The results show that factors such as the size of total livestock holding, perception, credit, extension contact and farm size near to communal land have a positive and statistically significant effect on households' WTP, while dependency ratio, migration, and initial starting bid have a negative and significant effect.
    Original languageEnglish
    Pages (from-to)2227-2245
    Number of pages19
    JournalJournal of Environmental Planning and Management
    Volume63
    Issue number12
    DOIs
    Publication statusPublished - 14 Oct 2020

    JEL classifications

    • o13 - "Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products"

    Keywords

    • bivariate probit
    • communal land
    • cvm
    • dichotomous choice
    • discrete
    • efficiency
    • erosion
    • raya kobo district
    • starting-point bias
    • wtp
    • STARTING-POINT BIAS
    • EROSION
    • Raya Kobo district
    • WTP
    • DISCRETE
    • CVM
    • DICHOTOMOUS CHOICE
    • EFFICIENCY

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