Preference heterogeneity and payment willingness within rural households’ participation in rural human settlement improvement

Abstract

Increasing concerns about rural human settlement improvement are of great significance in promoting the construction of ecological civilization in China. Rural households are direct beneficiaries and important participants of rural human settlement improvement, and their preferences regarding rural human settlement improvement are critical for the policy-formulating and fund-raising relating to rural human settlement improvement. Nevertheless, little research has been dedicated to analyzing rural households' preferences for the different aspects of rural human settlement. Based on survey data from Hubei province (central China), this study investigates preference heterogeneity and willingness to pay (WTP) for rural human settlement improvement schemes, and further provides a possible explanation for their preference heterogeneity. The results from a Latent class model reveal that the interviewed rural households' preferences fall into four identified types, and their preferences are significantly influenced by rural households’, social and economic statuses. The results also show that the average WTP for maintaining the current settlement status is 17.97 yuan per month per household, while the average WTP for improving the settlement status is 92.37 yuan per month per household. Therefore, policymakers should fully respect the will of rural households, and make an overall plan to promote local economic development in the process of creating a policy related to rural households' participation in rural human settlement improvement. This study provides a reference for developing countries and regions to formulate policies that promote rural households' participation in rural human settlement improvement.