IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v6y2014i10p6714-6728d40763.html
   My bibliography  Save this article

Determinants of Farmers’ Willingness to Pay and Its Level for Ecological Compensation of Poyang Lake Wetland, China: A Household-Level Survey

Author

Listed:
  • Fanbin Kong

    (Institute of Poyang Lake Eco-economics, Jiangxi University of Finance and Economics, Nanchang 330032, China)

  • Kai Xiong

    (Institute of Poyang Lake Eco-economics, Jiangxi University of Finance and Economics, Nanchang 330032, China)

  • Ning Zhang

    (Institute of Poyang Lake Eco-economics, Jiangxi University of Finance and Economics, Nanchang 330032, China)

Abstract

This study examines the determinants of farmers’ willingness to pay (WTP) and their payment levels for ecological compensation of the Poyang Lake Wetland in China. We developed a farmer household survey and gathered 292 effective responses. The contingent valuation method (CVM) and Heckman’s two-step model were employed for the empirical study. Results show that 46.58% of farmers are willing to pay ecological compensation, with an average price of $64.39/household per year. The influencing factors that significantly influence farmers’ WTP include household income, residential location, emphasis on improvement of wetland resources, arable land area, and contracted water area. In addition, household income, residential location, arable land area, and contracted water area are significantly related to their payment levels. The results of this empirical study inform important policy implications and recommendations.

Suggested Citation

  • Fanbin Kong & Kai Xiong & Ning Zhang, 2014. "Determinants of Farmers’ Willingness to Pay and Its Level for Ecological Compensation of Poyang Lake Wetland, China: A Household-Level Survey," Sustainability, MDPI, vol. 6(10), pages 1-15, September.
    • Handle: RePEc:gam:jsusta:v:6:y:2014:i:10:p:6714-6728:d:40763
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/6/10/6714/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/6/10/6714/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Armbrecht, John, 2014. "Use value of cultural experiences: A comparison of contingent valuation and travel cost," Tourism Management, Elsevier, vol. 42(C), pages 141-148.
    2. Sun, Chuanwang & Zhu, Xiting, 2014. "Evaluating the public perceptions of nuclear power in China: Evidence from a contingent valuation survey," Energy Policy, Elsevier, vol. 69(C), pages 397-405.
    3. Christopher F Baum, 2006. "An Introduction to Modern Econometrics using Stata," Stata Press books, StataCorp LP, number imeus, March.
    4. Hanemann, W Michael, 1984. "Discrete-Continuous Models of Consumer Demand," Econometrica, Econometric Society, vol. 52(3), pages 541-561, May.
    5. Bett, H.K. & Peters, K.J. & Nwankwo, U.M. & Bokelmann, W., 2013. "Estimating consumer preferences and willingness to pay for the underutilised indigenous chicken products," Food Policy, Elsevier, vol. 41(C), pages 218-225.
    6. Richard T. Carson & Robert Cameron Mitchell, 1993. "The Issue of Scope in Contingent Valuation Studies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(5), pages 1263-1267.
    7. Lee, Choong-Ki & W. Mjelde, James, 2007. "Valuation of ecotourism resources using a contingent valuation method: The case of the Korean DMZ," Ecological Economics, Elsevier, vol. 63(2-3), pages 511-520, August.
    8. Tambor, Marzena & Pavlova, Milena & Rechel, Bernd & Golinowska, Stanisława & Sowada, Christoph & Groot, Wim, 2014. "Willingness to pay for publicly financed health care services in Central and Eastern Europe: Evidence from six countries based on a contingent valuation method," Social Science & Medicine, Elsevier, vol. 116(C), pages 193-201.
    9. van den Berg, Bernard & Al, Maiwenn & Brouwer, Werner & van Exel, Job & Koopmanschap, Marc, 2005. "Economic valuation of informal care: The conjoint measurement method applied to informal caregiving," Social Science & Medicine, Elsevier, vol. 61(6), pages 1342-1355, September.
    10. Kevin J. Boyle & F. Reed Johnson & Daniel W. McCollum & William H. Desvousges & Richard W. Dunford & Sara P. Hudson, 1996. "Valuing Public Goods: Discrete versus Continuous Contingent-Valuation Responses," Land Economics, University of Wisconsin Press, vol. 72(3), pages 381-396.
    11. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    12. Sattout, E.J. & Talhouk, S.N. & Caligari, P.D.S., 2007. "Economic value of cedar relics in Lebanon: An application of contingent valuation method for conservation," Ecological Economics, Elsevier, vol. 61(2-3), pages 315-322, March.
    13. Richard O‘Conor & Magnus Johannesson & Per-Olov Johansson, 1999. "Stated Preferences, Real Behaviour and Anchoring: Some Empirical Evidence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 13(2), pages 235-248, March.
    14. Bruce K. Johnson & John C. Whitehead & Daniel S. Mason & Gordon J. Walker, 2012. "Willingness to Pay for Downtown Public Goods Generated by Large, Sports-Anchored Development Projects: The CVM Approach," Working Papers 12-01, Department of Economics, Appalachian State University.
    15. Champ, Patricia A. & Bishop, Richard C. & Brown, Thomas C. & McCollum, Daniel W., 1997. "Using Donation Mechanisms to Value Nonuse Benefits from Public Goods," Journal of Environmental Economics and Management, Elsevier, vol. 33(2), pages 151-162, June.
    16. Bostian, Moriah B. & Herlihy, Alan T., 2014. "Valuing tradeoffs between agricultural production and wetland condition in the U.S. Mid-Atlantic region," Ecological Economics, Elsevier, vol. 105(C), pages 284-291.
    17. Aurelia Bengochea-Morancho & Ana Fuertes-Eugenio & Salvador Saz-Salazar, 2005. "A comparison of empirical models used to infer the willingness to pay in contingent valuation," Empirical Economics, Springer, vol. 30(1), pages 235-244, January.
    18. Bernard van denBerg & Werner Brouwer & Job van Exel & Marc Koopmanschap, 2005. "Economic valuation of informal care: the contingent valuation method applied to informal caregiving," Health Economics, John Wiley & Sons, Ltd., vol. 14(2), pages 169-183, February.
    19. Loomis, John & Kent, Paula & Strange, Liz & Fausch, Kurt & Covich, Alan, 2000. "Measuring the total economic value of restoring ecosystem services in an impaired river basin: results from a contingent valuation survey," Ecological Economics, Elsevier, vol. 33(1), pages 103-117, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kai Xiong & Fanbin Kong & Ning Zhang & Ni Lei & Chuanwang Sun, 2018. "Analysis of the Factors Influencing Willingness to Pay and Payout Level for Ecological Environment Improvement of the Ganjiang River Basin," Sustainability, MDPI, vol. 10(7), pages 1-17, June.
    2. Jonathan Darkwah Baffoe & Takeshi Mizunoya & Helmut Yabar, 2021. "Determinants of Rice Farmers’ Willingness to Pay for Conservation and Sustainable Use of Swampy Wetlands in Ghana’s Northern and Ashanti Regions," Agriculture, MDPI, vol. 11(6), pages 1-18, May.
    3. Sana AKHTAR & Sarah DEAN & Faiza ANJUM & Maryam JAVED, 2018. "Determination of Willingness to Pay for Improved Water Supply in Selected Areas of Lahore," Chinese Journal of Urban and Environmental Studies (CJUES), World Scientific Publishing Co. Pte. Ltd., vol. 6(02), pages 1-12, June.
    4. Ji Feng & Zheng Zhao & Yali Wen & Yilei Hou, 2021. "Organically Linking Green Development and Ecological Environment Protection in Poyang Lake, China Using a Social-Ecological System (SES) Framework," IJERPH, MDPI, vol. 18(5), pages 1-23, March.
    5. Kai Xiong & Ning Zhang & Chih-Chun Kung & Fanbin Kong, 2019. "Determinants of Residents’ Willingness to Accept and Their Levels for Ecological Conservation in Ganjiang River Basin, China: An Empirical Analysis of Survey Data for 677 Households," Sustainability, MDPI, vol. 11(21), pages 1-18, November.
    6. Yaofeng Yang & Yajuan Chen & Zhenrong Yu & Pengyao Li & Xuedong Li, 2020. "How Does Improve Farmers’ Attitudes toward Ecosystem Services to Support Sustainable Development of Agriculture? Based on Environmental Kuznets Curve Theory," Sustainability, MDPI, vol. 12(20), pages 1-16, October.
    7. Seul-Ye Lim & Se-Jun Jin & Seung-Hoon Yoo, 2017. "The Economic Benefits of the Dokdo Seals Restoration Project in Korea: A Contingent Valuation Study," Sustainability, MDPI, vol. 9(6), pages 1-15, June.
    8. Hyo-Jin Kim & Seul-Ye Lim & Seung-Hoon Yoo, 2017. "The Convenience Benefits of the District Heating System over Individual Heating Systems in Korean Households," Sustainability, MDPI, vol. 9(8), pages 1-12, August.
    9. Yongrok Choi & Ning Zhang, 2015. "Introduction to the Special Issue on “the Sustainable Asia Conference 2014”," Sustainability, MDPI, vol. 7(2), pages 1-8, February.
    10. Sun, Chuanwang & Yuan, Xiang & Yao, Xin, 2016. "Social acceptance towards the air pollution in China: Evidence from public's willingness to pay for smog mitigation," Energy Policy, Elsevier, vol. 92(C), pages 313-324.
    11. Honggen Zhu & Zhengfei Guan & Xuan Wei, 2016. "Factors Influencing Farmers’ Willingness to Participate in Wetland Restoration: Evidence from China," Sustainability, MDPI, vol. 8(12), pages 1-12, December.
    12. Fei Wang & Degang Yang & Changjian Wang & Xinhuan Zhang, 2015. "The Effect of Payments for Ecosystem Services Programs on the Relationship of Livelihood Capital and Livelihood Strategy among Rural Communities in Northwestern China," Sustainability, MDPI, vol. 7(7), pages 1-21, July.
    13. Yanyun Zhao & Yongzhi Yan & Qingfu Liu & Frank Yonghong Li, 2018. "How Willing Are Herders to Participate in Carbon Sequestration and Mitigation? An Inner Mongolian Grassland Case," Sustainability, MDPI, vol. 10(8), pages 1-10, August.
    14. Yuheng Yang & Xi Zhang & Leran Chang & Yufei Cheng & Shengle Cao, 2018. "A Method of Evaluating Ecological Compensation Under Different Property Rights and Stages: A Case Study of the Xiaoqing River Basin, China," Sustainability, MDPI, vol. 10(3), pages 1-14, February.
    15. Gautam, Tej K. & Paudel, Krishna P. & Guidry, Kurt M., 2017. "Willingness To Pay For Irrigation Water In Louisiana," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252821, Southern Agricultural Economics Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bett, H.K. & Peters, K.J. & Nwankwo, U.M. & Bokelmann, W., 2013. "Estimating consumer preferences and willingness to pay for the underutilised indigenous chicken products," Food Policy, Elsevier, vol. 41(C), pages 218-225.
    2. Jonathan Darkwah Baffoe & Takeshi Mizunoya & Helmut Yabar, 2021. "Determinants of Rice Farmers’ Willingness to Pay for Conservation and Sustainable Use of Swampy Wetlands in Ghana’s Northern and Ashanti Regions," Agriculture, MDPI, vol. 11(6), pages 1-18, May.
    3. Pek, Chuen-Khee & Tee, Chee-Hoong & Ng, Phuay-Ying, 2010. "A Contingent Valuation Estimation of Hill Recreational and Services Values in Malaysia," MPRA Paper 23125, University Library of Munich, Germany.
    4. Richard Carson & Theodore Groves, 2007. "Incentive and informational properties of preference questions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 181-210, May.
    5. Robert J. Johnston & Kevin J. Boyle & Wiktor (Vic) Adamowicz & Jeff Bennett & Roy Brouwer & Trudy Ann Cameron & W. Michael Hanemann & Nick Hanley & Mandy Ryan & Riccardo Scarpa & Roger Tourangeau & Ch, 2017. "Contemporary Guidance for Stated Preference Studies," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(2), pages 319-405.
    6. Richard T. Carson, 2011. "Contingent Valuation," Books, Edward Elgar Publishing, number 2489.
    7. Costa-Font, Joan & Rovira-Forns, Joan, 2008. "Who is willing to pay for long-term care insurance in Catalonia?," Health Policy, Elsevier, vol. 86(1), pages 72-84, April.
    8. Ojea, Elena & Loureiro, Maria L., 2011. "Identifying the scope effect on a meta-analysis of biodiversity valuation studies," Resource and Energy Economics, Elsevier, vol. 33(3), pages 706-724, September.
    9. Zheng, Xuemei & Li, Cao & Fang, Xingming & Zhang, Ning, 2021. "Price sensitivity and consumers’ support for renewable energy in China," Energy, Elsevier, vol. 222(C).
    10. Joanna Coast & Hareth Al‐Janabi & Eileen J. Sutton & Susan A. Horrocks & A. Jane Vosper & Dawn R. Swancutt & Terry N. Flynn, 2012. "Using qualitative methods for attribute development for discrete choice experiments: issues and recommendations," Health Economics, John Wiley & Sons, Ltd., vol. 21(6), pages 730-741, June.
    11. Paul Ellickson & Sanjog Misra, 2012. "Enriching interactions: Incorporating outcome data into static discrete games," Quantitative Marketing and Economics (QME), Springer, vol. 10(1), pages 1-26, March.
    12. Hareth Al-Janabi & Terry N. Flynn & Joanna Coast, 2011. "Estimation of a Preference-Based Carer Experience Scale," Medical Decision Making, , vol. 31(3), pages 458-468, May.
    13. Richard T. Carson & Miko_aj Czajkowski, 2014. "The discrete choice experiment approach to environmental contingent valuation," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 9, pages 202-235, Edward Elgar Publishing.
    14. Hermann Donfouet & Ephias Makaudze & Pierre-Alexandre Mahieu & Eric Malin, 2011. "The determinants of the willingness-to-pay for community-based prepayment scheme in rural Cameroon," International Journal of Health Economics and Management, Springer, vol. 11(3), pages 209-220, September.
    15. Beltran, Jesusa C. & Pannell, David J. & Doole, Graeme J. & White, Benedict, 2011. "Factors that affect the use of herbicides in Philippine rice farming systems," Working Papers 108769, University of Western Australia, School of Agricultural and Resource Economics.
    16. Catherine L. Kling & Daniel J. Phaneuf & Jinhua Zhao, 2012. "From Exxon to BP: Has Some Number Become Better Than No Number?," Journal of Economic Perspectives, American Economic Association, vol. 26(4), pages 3-26, Fall.
    17. Ahmed Fayez Abdelgouad, 2015. "Determinants of Using Fixed-Term Contracts in the Egyptian Labor Market: Empirical Evidence from Manufacturing Firms Using World Bank Firm-Level Data for Egypt," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 4(1), pages 29-48.
    18. Emmanouil Mentzakis & Mandy Ryan & Paul McNamee, 2011. "Using discrete choice experiments to value informal care tasks: exploring preference heterogeneity," Health Economics, John Wiley & Sons, Ltd., vol. 20(8), pages 930-944, August.
    19. Damette, Olivier & Delacote, Philippe & Lo, Gaye Del, 2018. "Households energy consumption and transition toward cleaner energy sources," Energy Policy, Elsevier, vol. 113(C), pages 751-764.
    20. Lucy Kok & Caroline Berden & Klarita Sadiraj, 2015. "Costs and benefits of home care for the elderly versus residential care: a comparison using propensity scores," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(2), pages 119-131, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:6:y:2014:i:10:p:6714-6728:d:40763. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.