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The Economic Evaluation of Dryland Ecosystem Services in the South African Kgalagadi by the Local Communities

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  • Edwin Muchapondwa
  • Johane Dikgang

Abstract

This study seeks to value ecosystem services in the Kgalagadi area by applying the Choice Experiment technique. The values placed on dryland ecosystem services by indigenous communities are estimated using a Conditional Logit model, Random Parameter Logit model and a Random Parameter Logit model with interactions. The results show that local communities would prefer getting […]

Suggested Citation

  • Edwin Muchapondwa & Johane Dikgang, 2013. "The Economic Evaluation of Dryland Ecosystem Services in the South African Kgalagadi by the Local Communities," Working Papers 383, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:383
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    References listed on IDEAS

    as
    1. Edwin Muchapondwa & Johane Dikgang, 2013. "The Economic Evaluation of Dryland Ecosystem Services in the South African Kgalagadi Area and Implications for PES Involving the Khomani San," Working Papers 384, Economic Research Southern Africa.
    2. F Alpizar & F Carlsson & P Martinsson, 2003. "Using Choice Experiments for Non-Market Valuation," Economic Issues Journal Articles, Economic Issues, vol. 8(1), pages 83-110, March.
    3. Hausman, Jerry & McFadden, Daniel, 1984. "Specification Tests for the Multinomial Logit Model," Econometrica, Econometric Society, vol. 52(5), pages 1219-1240, September.
    4. Fredrik Carlsson & Mitesh Kataria, 2008. "Assessing Management Options for Weed Control with Demanders and Non-Demanders in a Choice Experiment," Land Economics, University of Wisconsin Press, vol. 84(3), pages 517-528.
    5. Arne Hole & Julie Kolstad, 2012. "Mixed logit estimation of willingness to pay distributions: a comparison of models in preference and WTP space using data from a health-related choice experiment," Empirical Economics, Springer, vol. 42(2), pages 445-469, April.
    6. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470.
    7. Peter Boxall & Wiktor Adamowicz, 2002. "Understanding Heterogeneous Preferences in Random Utility Models: A Latent Class Approach," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(4), pages 421-446, December.
    8. Wiktor Adamowicz & Peter Boxall & Michael Williams & Jordan Louviere, 1998. "Stated Preference Approaches for Measuring Passive Use Values: Choice Experiments and Contingent Valuation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 64-75.
    9. Daniel McFadden, 1986. "The Choice Theory Approach to Market Research," Marketing Science, INFORMS, vol. 5(4), pages 275-297.
    10. Chandra R. Bhat, 1997. "An Endogenous Segmentation Mode Choice Model with an Application to Intercity Travel," Transportation Science, INFORMS, vol. 31(1), pages 34-48, February.
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    Cited by:

    1. Johane Dikgang & Edwin Muchapondwa, 2014. "The economic valuation of nature-based tourism in the South African Kgalagadi area and implications for the Khomani San 'bushmen' community," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 3(3), pages 306-322, November.

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    More about this item

    Keywords

    Biodiversity conservation; choice experiment; econometric modelling; rural development;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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