Economic Evaluation of the Aso Grassland Landscape by Contingent Valuation Method: Comparative Analysis of Donation and Taxreallocation Payment Vehicles

Abstract

We have evaluated the Aso grassland landscape by contingent valuation method and analyzed the effect of paying methods, and attributes of respondents on the estimates. In doing so, it will make helpful policy-makers to develop conservation instruments for grassland landscape.The survey was conducted in December 1998, the survey areas are Kumamoto Prefecture that has the Aso grassland and Tokyo, and the rate of response against the number of inquiries delivered is about 30_??_40%. We have set two payment vehicles; making a fund by donation and a tax reallocation of budget.First, the prospect for trip to Aso area in the next five years has no effect on WTP by both payment vehicles. This means that the value of conservation of grassland landscape might be considered not as use value but as non-use value. Thus, in addition to user payment, the payment by government would be also a reasonable policy instrument.Secondly, we found that in the payment vehicles of donation, the mean of willingness to pay (WTP) has no difference between Tokyo and Kumamoto, but in tax reallocation the mean of WTP in Kumamoto is higher than that in Tokyo. This is due to that Kumamoto has more concern about the conservation of Aso grassland landscape and less income than Tokyo. Thus, it would be appropriate that local government shares a part of the conservation costs.Thirdly, the subjective probability of conservation by policy scenario has a positive effect on WTP in both payment vehicles. Therefore, the supply of easy-to-understand information for public is very important for policy makers.Lastly, as the mean of donation is 2, 091 yen per household, the total value of conserving Aso grassland is estimated around 1.24 billion yen annually for citizen of Kumamoto Prefecture, and using the sample return rate 0.412, the median 1, 000 yen, and total household numbers 594, 197, the reasonable project budget of conservation for the Prefecture is valued at 245 million yen.