A Contingent Valuation Estimate of the Benefits of Wolves in Minnesota

Abstract

In this paper we estimate the willingness to pay for a wolf management plan and a wolf damage plan in Minnesota using the contingent valuation method. The theoretical definition of willingness to pay for wolf protection is composed of use and non-use values. We incorporate a don’t know response option in the dichotomous choice valuation questions. A large number of respondents answered don’t know. The multinomial logit model is used to differentiate between don’t know and no responses. Non-use motives are important factors that explain willingness to pay. We use these benefit estimates in combination with two alternative cost estimates to consider the efficiency of the wolf management and damage plans. Both plans have estimated benefits greater than costs.