A COMPARISON OF STATED PREFERENCES METHODS FOR ECONOMIC VALUATION OF ECOSYSTEM SERVICES (CASE STUDY: QESHM MANGROVE ECOSYSTEMS)

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MASHAYEKHI ZAHRA; SHARZEHI GHOLAM ALI; DANEHKAR AFSHIN; MAJED VAHID

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Journal: Environmental Sciences Year:2018 | Volume:16 | Issue:1 Page(s): 69-88

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Title

A COMPARISON OF STATED PREFERENCES METHODS FOR ECONOMIC VALUATION OF ECOSYSTEM SERVICES (CASE STUDY: QESHM MANGROVE ECOSYSTEMS)

Author(s)

MASHAYEKHI ZAHRA | SHARZEHI GHOLAM ALI | DANEHKAR AFSHIN | MAJED VAHID | Issue Writer Certificate

Keywords

CHOICE EXPERIMENTQ1

CONTINGENT VALUATION METHODQ2

WILLINGNESS TO ACCEPTQ1

PREFERENCESQ1

LOCAL PEOPLEQ1

Abstract

Introduction: Stated preference methods are a set of methods for economic valuation of environmental goods and services which elicit individual PREFERENCES for goods and services using hypothetical market behaviour situations. They include the contingent valuation (CVM) and CHOICE EXPERIMENT (CE) methods which share a common theoretical basis in explaining the behaviour of choice. Based on neoclassical economic theory, WTP/ WTA estimates derived by the CVM and CE should be the same. However, several recent studies have shown that they differ. The goal of this article is to compare the ability of the CVM and the CE to elicit WTA for the conservation and environmental status improvement of the Hara forests.Materials and methods: To achieve this goal, the WTA of local communities living in the areas adjacent to these forests was evaluated based on data derived from questionnaire surveys. The CE and CVM questionnaires with a dichotomous choice format were carefully designed with WTA measurement and LOCAL PEOPLE were asked about their PREFERENCES for reduced access to the Hara forests under hypothetical scenarios in which they would receive monetary compensation for reducing or forgoing forest utilization. The collected data were analyzed using conditional logit and binary logit models.Results and discussion: The results showed that, when people are faced with different format hypothetical questions they present different behaviours. The results of the conditional logit model showed that more than half (57.75%) of local respondents tend to receive compensation for increases in environmental risk associated with conservation programmes. They prefer recreational opportunities to other two attributes (Hara cutting and fishing) with a compensation of 233940 IRR day-1. The results of the binary logit model for CVM survey data showed that 99 percent of respondents were willing to accept a reduction in their forest utilization and participate in the protection programmes. The mean WTA was estimated at 331, 411 IRR/household/day(9, 942, 330 IRR/month). Then the welfare values estimated by the two methods were compared. The findings from this comparison showed that the welfare value estimated through the CVM (331, 411 IRR/household/day) is much smaller and approximately one-sixth that obtained by corresponding CE (1, 959, 000 IRR/Day). The results also suggest that the CE method has a greater capacity to explain the choices made by consumers. This is because, in the CVM, only a single attribute– price - is used to describe the interested good and the choice of individuals is affected only by the amounts bid and socioeconomic variables; while in CE, the multiple attributes are used for describing the good and environmental change alternatives which results in the choices of people affected by interaction with the socioeconomic characteristics of respondents. Meanwhile, the CE method is effective for estimating welfare changes at different levels of environmental change; the CVM method, in contrast, estimates the value of a change in a single level, which is also a high level of protection.Conclusion: Due to the divergence of the results, it is impossible to say which method is more credible. It can only be acknowledged that the CE method can help decision makers and policymakers to prioritize different aspects of decision-making by gaining useful information about the final WTA of community members for the various attributes that improve on the project or the proposed design.

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APA: Copy

MASHAYEKHI, ZAHRA, SHARZEHI, GHOLAM ALI, DANEHKAR, AFSHIN, & MAJED, VAHID. (2018). A COMPARISON OF STATED PREFERENCES METHODS FOR ECONOMIC VALUATION OF ECOSYSTEM SERVICES (CASE STUDY: QESHM MANGROVE ECOSYSTEMS). ENVIRONMENTAL SCIENCES, 16(1 ), 69-88. SID. https://sid.ir/paper/117745/en

Vancouver: Copy

MASHAYEKHI ZAHRA, SHARZEHI GHOLAM ALI, DANEHKAR AFSHIN, MAJED VAHID. A COMPARISON OF STATED PREFERENCES METHODS FOR ECONOMIC VALUATION OF ECOSYSTEM SERVICES (CASE STUDY: QESHM MANGROVE ECOSYSTEMS). ENVIRONMENTAL SCIENCES[Internet]. 2018;16(1 ):69-88. Available from: https://sid.ir/paper/117745/en

IEEE: Copy

ZAHRA MASHAYEKHI, GHOLAM ALI SHARZEHI, AFSHIN DANEHKAR, and VAHID MAJED, “A COMPARISON OF STATED PREFERENCES METHODS FOR ECONOMIC VALUATION OF ECOSYSTEM SERVICES (CASE STUDY: QESHM MANGROVE ECOSYSTEMS),” ENVIRONMENTAL SCIENCES, vol. 16, no. 1 , pp. 69–88, 2018, [Online]. Available: https://sid.ir/paper/117745/en

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