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Measuring the Local Opportunity Costs of Conservation: A Provision Point Mechanism for Willingness-to-Accept

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  • Bush, Glenn
  • Hanley, Nicholas
  • Moro, Mirko
  • Rondeau, Daniel

Abstract

Protected areas are employed world-wide as a means of conserving biodiversity. Unfortunately, restricting access to such areas imposes opportunity costs on local people who have traditionally relied on access to obtain resources such as fuelwood and bushmeat. We use contingent valuation to estimate the local benefits forgone from loss of access to a number of protected area types in Uganda. Methodologically, we innovate by implementing a "provision point" mechanism to estimate Willingness to Accept compensation (WTA) for loss of access to protected areas. We show that the provision point reduces mean WTA by a significant degree.

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  • Bush, Glenn & Hanley, Nicholas & Moro, Mirko & Rondeau, Daniel, 2012. "Measuring the Local Opportunity Costs of Conservation: A Provision Point Mechanism for Willingness-to-Accept," Stirling Economics Discussion Papers 2012-14, University of Stirling, Division of Economics.
    • Handle: RePEc:stl:stledp:2012-14
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    File URL: http://hdl.handle.net/1893/8949
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    3. Leslie Richardson & Lynne Lewis, 2022. "Getting to know you: individual animals, wildlife webcams, and willingness to pay for brown bear preservation," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(2), pages 673-692, March.
    4. Otto, Steven & Poe, Gregory L. & Just, David R., 2017. "Formulating and Testing a New Conservation Auction Mechanism in an Experimental Setting," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258476, Agricultural and Applied Economics Association.
    5. Jobstvogt, Niels & Watson, Verity & Kenter, Jasper O., 2014. "Looking below the surface: The cultural ecosystem service values of UK marine protected areas (MPAs)," Ecosystem Services, Elsevier, vol. 10(C), pages 97-110.
    6. Laure Kuhfuss & Raphaële Préget & Sophie Thoyer & Nick Hanley, 2016. "Nudging farmers to enrol land into agri-environmental schemes: the role of a collective bonus," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 43(4), pages 609-636.
    7. Lloyd-Smith, Patrick & Adamowicz, Wiktor, 2018. "Can stated measures of willingness-to-accept be valid? Evidence from laboratory experiments," Journal of Environmental Economics and Management, Elsevier, vol. 91(C), pages 133-149.
    8. Nielsen, Martin Reinhardt & Theilade, Ida & Meilby, Henrik & Nui, Nguyen Hai & Lam, Nguyen Thanh, 2018. "Can PES and REDD+ match Willingness To Accept payments in contracts for reforestation and avoided forest degradation? The case of farmers in upland Bac Kan, Vietnam," Land Use Policy, Elsevier, vol. 79(C), pages 822-833.
    9. Johnston, Marie, 2014. "Contingent Valuation: A Comparison of Referendum and Voluntary Contribution Mechanisms," 2014 Conference (58th), February 4-7, 2014, Port Macquarie, Australia 165843, Australian Agricultural and Resource Economics Society.
    10. Desbureaux, Sébastien & Brimont, Laura, 2015. "Between economic loss and social identity: The multi-dimensional cost of avoiding deforestation in Eastern Madagascar," Ecological Economics, Elsevier, vol. 118(C), pages 10-20.
    11. Marcelânio Laurentino & Elcida Araújo & Marcelo Alves Ramos & Maria Clara Bezerra Tenório Cavalcanti & Paulo Henrique Santos Gonçalves & Ulysses Paulino Albuquerque, 2022. "Socioeconomic and ecological indicators in willingness to accept compensation for the conservation of medicinal plants in a tropical dry forest," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 4471-4489, March.
    12. Li, Zhi & Anderson, Christopher M. & Swallow, Stephen K., 2016. "Uniform price mechanisms for threshold public goods provision with complete information: An experimental investigation," Journal of Public Economics, Elsevier, vol. 144(C), pages 14-26.

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    More about this item

    Keywords

    Conservation costs; Protected areas; Uganda; Willingness to accept; Provision point mechanism; WTA;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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