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

*Corresponding author for this work

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1 Citation (Web of Science)

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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