Abstract
Valuation of environmental goods and services are frequently spatially heterogeneous, the significance of this heterogeneity for policy analysis is gradually recognized. For the valuation of environmental goods and services in the context of attaining a better environmental status across Heihe River basin (HRB), Northwest of China by 2020, a survey was conducted employing choice experiment approach across the entire river basin. In this research we estimate the impact of distance from inland rivers' origin (spatial attribute) on the inhabitants' willingness to pay for restoration of ecological attributes. A total of 11 ecological attributes were selected including 6 land related attributes and 5 water related attributes. The present study displays the outcomes of the research planned to examine differences in willingness to pay across different locations/distances. A total of five cities and 33 surround villages/townships were included to examine for location effect, while four ad hoc base distances split samples were recognized for distance effect i.e. ≤100km, ≤200km, ≤300 and > 300km from rivers' origin. The results of mixed logit model recognized that people living at different locations value the attributes differently. For instance the people of Zhangye region are willing to pay RMB 95.66 annually for improvements in biodiversity while in Gaotai the individuals' willingness to pay (WTP) for the same attributes was RMB 45.68. Similarly, the respondents' living nearer to the origin of river were willing to pay relatively higher amount for the upgradation in the degraded ecosystem services than the remainders. The results of willingness to pay obtained by Krinsky Robb method confirmed that the attributes quality of agricultural products and water quality were the most preferred attributes with the willingness to pay RMB 91.09 and 122.89 respectively. The significant results of willingness to pay may serve as a reference for sustainable improvements and uplifting of the degraded ecological attributes.
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