Contingent Valuation of Community Plantations in Ethiopia: an empirical Investigation

Course ID
Ethiopian Economics Association (EEA)
Fredrick Carlsson

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 well-known problem of compliance bias is also difficult to avoid in such settings. Application of a closed-ended format under such circumstances would exaggerate the WTP 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 the factors affecting their bids differ. The common preference model was thus rejected in this application.

The analysis of the bid function showed that landless, and in particular non-heads without land, have a significantly higher WTP for a new plantation. Afforestation activities might therefore have positive equity implications. 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 behaviour. The negative and significant relationship between livestock and WTP reminds us of the need to carefully consider the opportunity costs of such interventions. Land is scarce in the Ethiopian highlands and if a new use of the land is introduced, then there will always be losers

Corporate Author: Alemayehu Seyoum … [et al.] (editor)
Publisher: Ethiopian Economic Association (EEA)
Primary Descriptors: Farm management; Contingent Valuation Method

Secondary Descriptor: Forage plants

Geographic Descriptors: Ethiopia
Cataloge Date: 02/27/2013
Call Number: 330.963 PRO 2005
Serial Key Title: Proceedings of the Second International Conference on the Ethiopian Economy
Publication catagory: International Conference
Content type: EEA Publication
Volume: II
Publication date: 2013-05-27 23:05:00
Forum or Discussion date: 2013-02-27 14:55:45
Place of publication: Addis Ababa, Ethiopia
Type of material: Book
Current frequency: Annualy
Author: Fredrick Carlsson and gunnar Kohlin