IDEAS home Printed from https://ideas.repec.org/p/hhs/gunwpe/0151.html
   My bibliography  Save this paper

Contingent valuation of community plantations in Ethiopia: a look into value elicitation formats and intra-household preference variations

Author

Listed:
  • Carlsson, Fredrik

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Köhlin, Gunnar

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Mekonnen, Alemu

    (Department of Economics, Addis Ababa University, Ethiopia; and Environmental Economics Policy Forum for Ethiopia)

Abstract

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 wellknown problem of compliance bias is also difficult to avoid in such settings. Application of a closed-ended format under such circumstances would exaggerate the willingness to pay 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 there are gender variations in the factors that affect the bids. The common preference model was thus rejected in this application. 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 behavior. Women in villages without any existing community plantation are, however, significantly more interested in the establishment of a plantation than men. The aggregate willingness to pay vary dramatically between villages pointing at the need for good selection methods in targeting such interventions.

Suggested Citation

  • Carlsson, Fredrik & Köhlin, Gunnar & Mekonnen, Alemu, 2004. "Contingent valuation of community plantations in Ethiopia: a look into value elicitation formats and intra-household preference variations," Working Papers in Economics 151, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0151
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/2077/2752
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cameron, Trudy Ann, 1988. "A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 355-379, September.
    2. 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.
    3. Bengt Kriström, 1993. "Comparing continuous and discrete contingent valuation questions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 3(1), pages 63-71, February.
    4. Butler, J S & Moffitt, Robert, 1982. "A Computationally Efficient Quadrature Procedure for the One-Factor Multinomial Probit Model," Econometrica, Econometric Society, vol. 50(3), pages 761-764, May.
    5. Jagger, Pamela & Pender, John, 2003. "The role of trees for sustainable management of less-favored lands: the case of eucalyptus in Ethiopia," Forest Policy and Economics, Elsevier, vol. 5(1), pages 83-95, January.
    6. 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.
    7. Gebremedhin, Berhanu & Pender, John & Tesfay, Girmay, 2003. "Community natural resource management: the case of woodlots in Northern Ethiopia," Environment and Development Economics, Cambridge University Press, vol. 8(1), pages 129-148, February.
    8. Patricia Champ & Richard Bishop, 2001. "Donation Payment Mechanisms and Contingent Valuation: An Empirical Study of Hypothetical Bias," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(4), pages 383-402, August.
    9. Köhlin, Gunnar, 2001. "Contingent valuation in project planning and evaluation: the case of social forestry in Orissa, India," Environment and Development Economics, Cambridge University Press, vol. 6(2), pages 237-258, May.
    10. Hoben, Allan, 1995. "Paradigms and politics: The cultural construction of environmental policy in Ethiopia," World Development, Elsevier, vol. 23(6), pages 1007-1021, June.
    11. Lampietti, Julian, 1999. "Do husbands and wives make the same choices? Evidence from Northern Ethiopia," Economics Letters, Elsevier, vol. 62(2), pages 253-260, February.
    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. Gelo, Dambala & Koch, Steven F., 2012. "Does one size fit all? Heterogeneity in the valuation of community forestry programs," Ecological Economics, Elsevier, vol. 74(C), pages 85-94.
    2. Dambala Gelo & Steven F. Koch, 2011. "Contingent Valuation of Community Forestry Programs in Ethiopia: Observing Preference Anomalies in Double-Bounded CVM," Working Papers 201124, University of Pretoria, Department of Economics.
    3. Geta, Endrias & Mezgebo, Alem & Zeleke, Fresenbet, 2015. "Economic valuation of improved management of Dechatu drainage basin in Dire Dawa Administration, Ethiopia," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 117(3), pages 1-8, December.
    4. Gidey Kidu Mezgebo & Teklay Negash Gebrezgiabher & Metkel Aregay Gebreyesus & Kidane Tesfay Gebrezgiabher & Leake Gebreslassie Weldegiwergis & Haileslasie Gebrezgiabher Hailu, 2022. "Impact of community-based exclosure to smallholder farmers’ livelihood and their willingness to pay: empirical evidences from Tigrai, Ethiopia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(2), pages 2598-2615, February.
    5. Gelo, Dambala & Koch, Steven F., 2015. "Contingent valuation of community forestry programs in Ethiopia: Controlling for preference anomalies in double-bounded CVM," Ecological Economics, Elsevier, vol. 114(C), pages 79-89.
    6. Justin Visagie & Dorrit Posel, 2013. "A reconsideration of what and who is middle class in South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 30(2), pages 149-167, June.
    7. Mekonnen, Alemu & Damte, Abebe, 2011. "Private Trees as Household Assets and Determinants of Tree-Growing Behavior in Rural Ethiopia," RFF Working Paper Series dp-11-14-efd, Resources for the Future.
    8. MEZGEBO, Alem & GETA, Endrias & ZELEKE, Fresenbet, 2016. "Urban Freshwater Users Willingness To Pay For Upland Degraded Watershed Management: The Case Of Dechatu In Dire Dawa Administration, Ethiopia," Review of Agricultural and Applied Economics (RAAE), Faculty of Economics and Management, Slovak Agricultural University in Nitra, vol. 19(1), pages 1-8, March.
    9. Nathan Morrow & Luca Salvati & Andrea Colantoni & Nancy Mock, 2018. "Rooting the Future; On-Farm Trees’ Contribution to Household Energy Security and Asset Creation as a Resilient Development Pathway—Evidence from a 20-Year Panel in Rural Ethiopia," Sustainability, MDPI, vol. 10(12), pages 1-24, December.

    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. Wiktor Adamowicz & Mark Dickie & Shelby Gerking & Marcella Veronesi & David Zinner, 2014. "Household Decision Making and Valuation of Environmental Health Risks to Parents and Their Children," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 1(4), pages 481-519.
    2. Gelo, Dambala & Koch, Steven F., 2015. "Contingent valuation of community forestry programs in Ethiopia: Controlling for preference anomalies in double-bounded CVM," Ecological Economics, Elsevier, vol. 114(C), pages 79-89.
    3. Luchini, Stéphane & Watson, Verity, 2013. "Uncertainty and framing in a valuation task," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 204-214.
    4. Matthew Kotchen, 2015. "Reconsidering Donations for Nonmarket Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(3), pages 481-490, November.
    5. Hermann Donfouet & Pierre-Alexandre Mahieu & Eric Malin, 2013. "Using respondents’ uncertainty scores to mitigate hypothetical bias in community-based health insurance studies," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(2), pages 277-285, April.
    6. Lopez-Becerra, E.I. & Alcon, F., 2021. "Social desirability bias in the environmental economic valuation: An inferred valuation approach," Ecological Economics, Elsevier, vol. 184(C).
    7. Justin Visagie & Dorrit Posel, 2013. "A reconsideration of what and who is middle class in South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 30(2), pages 149-167, June.
    8. Fifer, Simon & Rose, John M., 2016. "Can you ever be certain? Reducing hypothetical bias in stated choice experiments via respondent reported choice certaintyAuthor-Name: Beck, Matthew J," Transportation Research Part B: Methodological, Elsevier, vol. 89(C), pages 149-167.
    9. Whitehead, John C. & Cherry, Todd L., 2007. "Willingness to pay for a Green Energy program: A comparison of ex-ante and ex-post hypothetical bias mitigation approaches," Resource and Energy Economics, Elsevier, vol. 29(4), pages 247-261, November.
    10. Luchini, Stéphane & Watson, Verity, 2013. "Uncertainty and framing in a valuation task," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 204-214.
    11. Gelo, Dambala & Koch, Steven F., 2012. "Does one size fit all? Heterogeneity in the valuation of community forestry programs," Ecological Economics, Elsevier, vol. 74(C), pages 85-94.
    12. Li, Hui & Jenkins-Smith, Hank C. & Silva, Carol L. & Berrens, Robert P. & Herron, Kerry G., 2009. "Public support for reducing US reliance on fossil fuels: Investigating household willingness-to-pay for energy research and development," Ecological Economics, Elsevier, vol. 68(3), pages 731-742, January.
    13. Lyssenko, Nikita & Martinez-Espineira, Roberto, 2009. "`Been there done that': Disentangling option value effects from user heterogeneity when valuing natural resources with a use component," MPRA Paper 21976, University Library of Munich, Germany, revised 08 Apr 2010.
    14. Sund, Björn, 2009. "Certainty calibration in contingent valuation - exploring the within-difference between dichotomous choice and open-ended answers as a certainty measure," Working Papers 2009:1, Örebro University, School of Business.
    15. Ewa Zawojska & Pierre-Alexandre Mahieu & Romain Crastes & Jordan Louviere, 2016. "On a way to overcome strategic overbidding in open-ended stated preference surveys: A recoding approach," Working Papers 2016-34, Faculty of Economic Sciences, University of Warsaw.
    16. Patricia Champ & Richard Bishop, 2001. "Donation Payment Mechanisms and Contingent Valuation: An Empirical Study of Hypothetical Bias," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(4), pages 383-402, August.
    17. 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.
    18. Drichoutis, Andreas C. & Vassilopoulos, Achilleas & Lusk, Jayson L. & Nayga, Rodolfo M. Jr., 2015. "Reference dependence, consequentiality and social desirability in value elicitation: A study of fair labor labeling," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202705, European Association of Agricultural Economists.
    19. Dmitriy Volinskiy & Wiktor Adamowicz & Michele Veeman, 2011. "Predicting versus testing: a conditional cross‐forecasting accuracy measure for hypothetical bias," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(3), pages 429-450, July.
    20. Carlsson, Fredrik & Kataria, Mitesh, 2016. "How are you? How's it going? What's up? What's happening? Nudging people to tell us how they really are," Working Papers in Economics 649, University of Gothenburg, Department of Economics.

    More about this item

    Keywords

    Community plantation; Common preference model; Contingent valuation;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:hhs:gunwpe:0151. 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: Jessica Oscarsson (email available below). General contact details of provider: https://edirc.repec.org/data/naiguse.html .

    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.