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Users and Non-users of Wetland Area; Willingness to Pay and Demand Elasticity

Author

Listed:
  • Sara Kaffashi
  • Mad Shamsudin
  • Alias Radam
  • Khalid Rahim
  • Mohd Yacob

Abstract

The present paper uses error component model to elicit respondents preferences and willingness to pay (WTP) for wetland conservation. The main objective of this research was to estimate the difference between preferences and WTP of respondents who are users of wetland and those who consider as non-users. The results of structural equation modelling (SEM) and error component logit model (ECM) showed significant difference between WTP and attitudinal factors of two groups. The results of SEM indicated that respondents’ management concerns, income, and their employment status had positive and direct effect on their WTP. Results of ECM showed that user model is slightly better predictor of respondents’ choice. The non-market values of the wetland for users are estimated approximately US$ 3.67 per household per month meanwhile this value for nonusers was about US$ 2.80. The overall results indicated that familiarity and previous knowledge on wetland has significant effect on respondnets’ perception, attitudes and WTP. Results also showed that demand for better conservation and management of wetland is relatively price inelastic. This study conclude that improvement in Shadegan International Wetland management will bring higher utility for both users and nonusers society and hence will be supported by them.

Suggested Citation

  • Sara Kaffashi & Mad Shamsudin & Alias Radam & Khalid Rahim & Mohd Yacob, 2015. "Users and Non-users of Wetland Area; Willingness to Pay and Demand Elasticity," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 8(8), pages 1-56, August.
    • Handle: RePEc:ibn:jsd123:v:8:y:2015:i:8:p:56
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    References listed on IDEAS

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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