Contingent valuation approach in measuring the multifunctionality of agriculture and rural areas in Japan

Abstract

The purpose of this study was to measure the economic value of the multifunctionality of agriculture and rural areas based on a more realistic assumption than that adopted in previous studies. Willingness to pay (WTP) for implementing a policy that would maintain a level of multifunctionality corresponding to a 20% decrease in the farmland area in Japan was measured by the double-bounded dichotomous choice contingent valuation method (CVM). According to a country-wide survey, the overall median WTP was 4,144 yen per household annually. The multifunctionality of agriculture and rural areas was classified into eight functions. The WTP for each of these functions was calculated taking into account the ratings assigned to the functions by the respondents. The WTP was 649 yen for flood prevention, 505 yen for recharging groundwater, 642 yen for water environment conservation, 445 yen for soil erosion prevention, 579 yen for organic resource utilization, 394 yen for the development of favorable landscapes, 290 yen for recreation and relaxation, and 641 yen for wildlife protection.