Contingent Valuation Method Research Articles

Readiness to finance carbon emissions offsets by road passengers in northeastern Nigeria: An application of contingent valuation technique

As the world faces pressing challenge of climate change, developing effective strategies to reduce carbon emissions has become paramount. Thus, this study investigates the readiness of road transport passengers in northeastern Nigeria to contribute to carbon offset efforts. The study involved 400 randomly selected road passengers which were questioned about how much they would be willing to spend on carbon emissions reduction based on predetermined bid prices. The study used Contingent Valuation method (CV) for data analysis and the results revealed that socioeconomic variables such as marital status, income level, gender, and education status were found as significant determinants of readiness to finance carbon offsets. Additionally, the research identified N66.15 as the estimated average WTP per individual monthly for this study. That was the value that road passengers are prepared to spend in addition to the cost of transportation in order to offset the emissions generated while they are traveling. As a recommendation, relevant stakeholders and policymakers should conduct targeted awareness campaigns to educate road travel passengers about the benefits of carbon offset initiatives. Also, feedback from road transport passengers should be sought regularly to adapt the programs according to their preferences and needs so as to reduce the impact of CO2 emissions on environment in the research area.

Determinants of households' willingness to pay for health insurance in Burkina Faso.

The operationalization of universal health insurance in Burkina Faso represents a significant challenge for health coverage. The willingness of households to pay is a crucial aspect of the process. This highlights the necessity of examining the factors that may explain their willingness to pay. The objective of this study is to analyze the determinants of households' willingness to pay for health insurance in Burkina Faso. The data used in this study were collected between March and September 2017 in the territory of Burkina Faso, covering six administrative regions. A total of 211 households were surveyed, 71 in urban areas and 140 in rural areas. The Tobit model was employed to analyze the determinants of willingness to pay, with the contingent valuation method used to obtain willingness to pay. The results of the descriptive analysis indicate that households are willing to pay approximately 7,600F CFA on average for health insurance. The estimation results demonstrate that income has a positive effect on households' willingness to pay. Additionally, the occupation of the head of household and the insurance reimbursement rate are identified as determinants of willingness to pay. The findings of this study indicate that income, the rate of repayment and the occupation of the head of household are the primary determinants of willingness to pay. In terms of implications, it is essential to ensure that the rate of protection is high, which could encourage households to pay the premium. Furthermore, the results of the evaluation suggest that interventions to increase household income may be beneficial.

Assessing Willingness to Accept a Compensation for Evicted Land in Peri-urban Areas: A Contingent Valuation Method

Urban expansion in developing countries like Ethiopia is causing political turmoil in peri-urban areas due to inadequate compensation for evicted farmers because of the absence of a land market, which is prohibited by Ethiopia's land policy. This paper applies the contingent valuation method to measure the compensation value considered acceptable to those who are evicted from their farm land. The west Gojjam and Awi zones of Amhara region, Ethiopia are chosen for the case study based on 393 completed questionnaires. It has been demonstrated that a willingness to accept compensation is essential for maintaining sustainable livelihoods. The study applied single-bounded contingent valuation and double-bounded contingent valuation methods to estimate the mean willingness to accept compensation value. Based on the finding, double-bounded contingent valuation could be more optimal for the welfare of the evictees in detecting and correcting respondent’s bias due to its narrow confidence interval. Pilot survey was employed to ensure reliability and validity of the methods employed. Therefore, the optimal bid vector for multiplying the average land output preceding three years of eviction is 29.27. Additionally, variables such as initial bid, age, education, and total annual income significantly affect the willingness to accept compensation. The study recommends that federal and local governments should provide adequate compensation offers that prioritize the well-being of peri-urban communities during urban expansion programs, as farmers are losing their most valuable asset. This is crucial for sustainable living and poverty reduction among those who have been evicted.

Consumers’ Willingness to Pay for Gamy Salt in Jabodetabek

Seaweed, being an abundant resource, has the potential to be processed into raw material for salt. This potential is supported by the high demand for salt consumption and the serious problem of hypertension in Indonesia. Consuming salt made from seaweed can be an alternative with low sodium content, which can help manage hypertension. Currently, the salt made from seaweed that is available to be purchased is Gamy salt. However, Gamy salt is more expensive than other low-sodium salts. This research aims to estimate the amount of consumers’ willingness to pay for Gamy salt and identify factors that influence their willingness to pay. The analytical methods used in this research include descriptive analysis, Contingent Valuation Method, and logistic regression. The research involved 103 respondents aged 30 years and above, residing in Jabodetabek, and having a history or risk of hypertension. The results indicate that the average willingness to pay for Gamy salt is Rp17,873.79 per 100 grams. Factors that significantly influence consumers to pay an extra price for Gamy salt are income, knowledge regarding seaweed salt, and health awareness.

Willingness to Pay Analysis of Sekar Arum Organic Rice Products (Case Study of Gapoktan Damarwulan Ungkal Jaya: Kediri Regency)

The growing trend of healthy lifestyles around the world is driving an increase in demand for organic products, including rice, which is one of the staple foods. In Indonesia, the majority of farmers still grow rice conventionally, producing non-organic rice. However, the increase in organic rice farming land in Madiun City has not been matched by an effective marketing system or special pricing rules. This study uses a quantitative approach with the contingent valuation method and logistic regression analysis to measure consumers' willingness to pay more for organic rice. The results show that 93% of respondents are willing to pay more, with an average willingness to pay of IDR 23,310, an increase of 16.55% from the initial price. The most influential variable is access to organic rice.

Beyond aquifer boundaries: unveiling the multi-dimensional value of groundwater management in Jeju, Korea

ABSTRACT This paper presents a comprehensive analysis of groundwater valuation in Jeju Island, Korea, which relies heavily on groundwater resources. The research addresses the limitations of conventional valuation methodologies that often undervalue groundwater management and ignore spatial heterogeneity. We employ three non-market valuation aggregation methods: local benefit, national benefit, and a combined heterogeneous benefit approach. The heterogeneous benefit approach divides the population into groups based on their distinct groundwater valuations and then consolidates their willingness to pay. Using a contingent valuation method, we analyze survey data from 542 respondents in Jeju and 1,000 respondents nationwide to capture the comprehensive value of improving groundwater quality, considering both local and non-local dependencies. Results show that national benefits exceed local benefits by a factor of 21.4, and this disparity increases to 21.6 when spatial heterogeneity is included. These findings highlight a significant underestimation in previous studies focusing solely on local beneficiaries. Our approach enhances understanding of the varied values attributed to groundwater by different populations, providing crucial insights for sustainable water resource management

Analysis of Willingness to Pay For Environmental Services in the Management Planning of the Jero Kerti Waterfall Tourism Object with the Ecotourism Concept

Indonesia has significant natural wealth, with abundant natural resources in it. Tourism is one of the strategic sectors in the development of the regional economy, especially in the waterfall tourism area. Jero Kerti Waterfall, located in Dasan Geria Village, Lingsar District, West Lombok Regency, West Nusa Tenggara, is one of the tourist attractions that is quite popular with the community. Although still in the early stages of ecotourism concept management, Dasan Geria Village has become a Tourism Village area in West Lombok Regency. Suboptimal tourism management can threaten the sustainability of natural resources and the surrounding ecosystem. Therefore, this study aims to calculate the willingness to pay (WTP) value for environmental services to support Jero Kerti Waterfall ecotourism and to determine the factors that influence the WTP value. This study uses a descriptive approach to create systematic, factual, and accurate descriptions and descriptions of the facts, nature, and relationships between the phenomena studied. The sampling technique uses simple random sampling to ensure that every visitor has an equal opportunity to be interviewed. Data were analyzed using the Contingent Valuation Method (CVM) to determine WTP. Analysis of factors affecting WTP values ​​was carried out using a simple regression equation. Data processing used the SPSS application to test validity and classical assumptions, and to determine the effect of independent variables on dependent variables together.

ECONOMIC VALUATION OF ECOSYSTEM SERVICES FOR THE MAINTENANCE OF TOURISM ACTIVITY IN THE CENTRAL AMAZON, BRAZIL

The valuation of ecosystem services provides essential information that makes it possible to estimate the economic value of environmental resources and their benefits. The aim was to estimate the value of the forest's cultural ecosystem services provided to maintain tourist activity in Presidente Figueiredo, Amazonas. The contingent valuation method (CVM) was used to estimate the willingness to pay (WTP) of users (tourists and visitors) and the willingness to accept (WTA) of landowners, local business owners and other interviewees. The results of the interviews indicate that 71% of users would be willing to pay an average of R$16.57 day-1visit-1, while 100% of interviewees would be willing to conserve the forests in exchange for receiving R$327.63 ha-1year-1. In conclusion, most of the interviewees agreed that valuing the forest's ecosystem services is fundamental to maintaining tourist activity.

Economic Assessment of Meteorological Information Services for Capture Fisheries in Taiwan

This study evaluates the economic benefits of meteorological information services (MISs) provided by the Central Weather Administration (CWA) in Taiwan, specifically for Taiwan’s capture fishery industry. Using the contingent valuation method (CVM) and conducting in-person interviews, we collected questionnaires from capture fishery practitioners nationwide to gather their subjective evaluations of the meteorological information services provided by the CWA. Based on these evaluations, we further investigated the respondents’ willingness to pay (WTP) for the CWA’s meteorological information services. An empirical analysis of the bid function was conducted to identify the key factors influencing the respondents’ bidding behavior. The empirical findings indicate that the primary factors affecting bids include subjective perceptions (such as forecast accuracy ratings and the ratings of the impacts on fishing production), working location, fishing vessel tonnage, and fishing methods. The median WTP for Taiwanese capture fishery practitioners is Taiwan dollar (TWD) 2111.12 per person per year. Based on the number of capture fishery practitioners in Taiwan in 2019, the total annual economic value of applying MIS in coastal and offshore fisheries is estimated to be between TWD 376 million and TWD 496 million per year.

Transfusion burden and willingness to pay for temporary alleviation of anemia status in transfusion-dependent beta-thalassemia patients in China

BackgroundTransfusion-dependent β-thalassemia (TDT) is one of the global public health concerns highlighted by the World Health Organization. Patients with TDT require regular blood transfusion to survive. However, the availability of blood resources is extremely limited. The purpose of this study was to investigate transfusion burden and willingness to pay (WTP) for temporary remission of anemia status among patients with TDT and to explore the associated factors.MethodsAdult patients with TDT were recruited through cluster sampling across several high-incidence provinces in China. Consenting patients completed online questionnaires on demographic information, transfusion burden and WTP with real-time WeChat communication assistance from researchers. The guiding techniques of double-bounded dichotomous choices and open-ended questions in the contingent valuation method (CVM) were used to obtain participants’ WTP for 1 unit of leukocyte-depleted red blood cells. WTP calculations were performed using maximum likelihood estimation, with further insights gained through subgroup analysis based on gender, family monthly income level and convenience of blood transfusion.ResultsThe analysis included 149 TDT patients from five high-incidence provinces, with an average monthly income of $198.5. Patients received an average of 3.7 units per transfusion, 15.4 times annually, with an average WTP of $70.4 per unit (95% CI [62.0, 78.9]). Estimated WTP for temporary anemia alleviation per transfusion totaled $260.6, exceeding monthly income by 1.32 times. Higher WTP was observed among males, higher-income households, and those with at least junior education. Lower WTP was noted among patients with lower transfusion volumes and those needing to travel for transfusion or during hospitalization for blood transfusion.ConclusionHigh WTP indicated a strong desire for temporary anemia relief. Most TDT patients faced significant economic and transfusion burden. The evident gap in meeting clinical needed underscores the urgent demand for innovative treatments to reduce transfusion dependency, potentially transforming TDT care and improving socioeconomic well-being and clinical outcomes. These findings supported evidence-based decision-making for TDT pharmacoeconomics and efficient healthcare resource allocation in China.

Economic assessment of MSW reduction policy in the Republic of Kazakhstan using contingent valuation method

The growth of waste, including food waste, is one of the main environmental problems of current time. Our planet is increasingly covered with waste every year, and a large area is formed under landfills. Therefore, the ways to reduce waste effectively are being investigated by worldwide scientists. Composting is one of the proven means of dealing with food (organic) waste. Fortunately, this method of recycling food waste is actively practiced in Kazakhstan. However, statistics show that food waste recycling is still developing slowly. Only 3% of the total amount of waste processed is food waste. To develop effective strategies for addressing environmental programs, scientists propose using the CV method to determine the monetary value of environmental benefits. Furthermore, the examination of household behaviour regarding food waste is crucial for enhancing the effectiveness of government environmental programs. The results of this study showed that Kazakhstanis expressed their willingness to support the environmental initiative and pay 10 tenge more for utilities if this money was used to create food industry enterprises. This amount will be 600 million per year. The results of the regression analysis showed the importance of age and leading an environmentally friendly lifestyle in supporting environmental initiatives. Although we consider the results of this study to be preliminary data and continue to work on scaling the sample size, the chosen method of analysis may nonetheless be of interest to other researchers in the field.

Farmers’ Willingness to Accept Afforestation in Farming Land and Its Influencing Factors in Fragile Landscapes Based on the Contingent Valuation Method

Afforestation (AF) in farmland has been widely used as an alternative and sustainable land-use practice to address socioeconomic and environmental challenges. The aim of this study is to estimate farmers’ willingness to accept (WTA) compensation and land, both of which are equally significant for policymakers to ensure the effective implementation of AF and achieve desired outcomes. This topic has not been sufficiently explored in previous research. This study focused on areas characterized by insecure farming conditions, backward economies, and fragile landscapes, where farmers are generally unfamiliar with AF or compensation for ecosystem services under payment for ecosystem services programs. It assessed their attitudes towards the WTA AF, compensation, and land as an alternative practice, which remains under-researched. This is crucial for designing effective AF programs in the future to improve livelihood and enhance the quantity and quality of the environment. This study used the contingent valuation method to estimate the minimum WTA compensation and maximum land for the forgone loss and alternative land-use practices. A questionnaire survey was conducted in Hupsekot municipality, Nepal, with 232 farmer households. The ordinal logistic regression model was used to analyze influencing factors of WTA compensation and land. The result showed that farmers’ average WTA compensation was NPR 1268.67 (USD 9.76)/Kattha/year, with 2.64 Kattha land available for AF. The factors, including socioeconomic characters and attitudes toward the environmental situation and forests, significantly influenced WTA values and provided potential target factors to achieve maximum AF land within a lower budget.

LOCAL RESIDENTS’ WILLINGNESS TO DONATE FOR LOW CARBON CITY INITIATIVES IN TAIPING, PERAK: PROPOSED E-BIKE-SHARING PROJECT

The transport sector in Malaysia ranked second in the country's total energy consumption for 2021, thereby contributing to greenhouse gas emissions. Numerous cities strive to attain low-carbon urban environments. E-bikes, as environmentally friendly vehicles, have the potential to play a significant role in urban transportation by contributing to the creation of low-carbon cities. Taiping, Perak, has been recognised as one of the world's top 3 most sustainable cities for 2019. This prestigious accolade positions it as an ideal location for an e-bike project, further solidifying its commitment to maintaining its status as a sustainable city. This study seeks to evaluate the awareness and attitudes of Taiping residents towards e-bikes, determine the factors that influence their willingness to donate, and ascertain the average amount they are willing to contribute to the e-bike-sharing development project in Taiping, Perak. A survey was conducted with 385 respondents using the Contingent Valuation Method, employing stratified random sampling. The findings indicated a notable level of awareness and favourable attitudes towards e-bikes. Factors such as bid, age, education, income, and awareness impact the willingness to donate. On average, each person contributes RM10.40 towards the proposed e-bike-sharing project in Taiping. The discovery offered valuable insights to the Taiping Municipal Council regarding securing financial support and better understanding residents' perspectives on e-bike sharing.

Assessing the Impact of Public Perception and Willingness-to-Pay on Reducing Smog in Pakistan: Evidence from Lahore City

Smog pollution is a major global issue affecting Pakistan's major cities, particularly Lahore. The study aims to explore the public perception and willingness to pay (WTP) for smog reduction via the Contingent Valuation Method (CVM). This study uses a structured interview schedule and interval regression model to analyse the public perception and willingness to pay for smog reduction. Findings reveal that only 46% of respondents perceive smog pollution “strongly severe," attributing it primarily to industrial (43%) and vehicular (35%) emissions. Furthermore, after receiving the information, the respondents' WTP increased from 68 PKR to 84 PKR. However, respondents were more willing to pay for self-protection than to support the control and preventive measures. Socioeconomic factors such as education and income significantly influence WTP for smog reduction. This research underscores the need for enhanced public awareness and participation in smog mitigation for sustainable development.

ECONOMIC VALUE OF CRITICAL LAND IN SEMPAYANG VILLAGE, NORTH KALIMANTAN

This research aims to identify the locations of vulnerable critical land areas and assess the economic value of mitigating agricultural land in critical conditions within Sempayang Village, North Kalimantan, Indonesia. The study employs Geographic Information Systems (GIS) to analyze land distribution and the Contingent Valuation Method (CVM) to estimate the economic value. A purposive sampling method was used to select 51 respondents from local farmers, with a focus on their willingness to pay for land rehabilitation. The results of this research are the largest critical land area was found in Malinau District, covering 54,108 hectares. Farmers showed a willingness to pay between Rp. 26,000 and Rp. 30,000 for land rehabilitation efforts, with a total economic value of Rp. 45,360,000 annually for non-critical land. The study underscores the importance of community and government collaboration for effective land restoration programs.

Patient’s willingness to pay for improved community health insurance in Tanzania

Globally, achieving universal health coverage remains significant challenge. Health insurance coverage in low- and middle-income countries is still low with only a few African countries managed to reach 50% coverage. This study aimed to investigate the factors influencing patients’ willingness to pay (WTP) for medication and various versions of the improved Community Health Insurance Fund (iCHF) in Tanzania. A facility-based cross-sectional study was conducted in all hospitals, health centres, and eight randomly sampled dispensaries, sampling participant from the queue, one out of every three patient based on their order of entry into consultation room, and interviewed 1,748 patients in Kilombero and Same districts in Tanzania. We used multi-stage Contingent Valuation Methods exploring data collected during client exit interviews. We employed a random utility model and estimated WTP through an ordered logit model. The independent variables were; patient’s gender, age, marital status, education, employment status, Non-Communicable Disease (NCD) status, health insurance status, and the type of healthcare facility level. Our findings revealed that most patients exhibited a WTP of an amount equivalent to the current iCHF premiums and would also be willing to pay for an augmented iCHF premium inclusive of additional medication coverage. Upon adjusting for demographic characteristics, we observed that patients enrolled in an insurance program or benefiting from user fee waivers demonstrated a lower WTP for medication, while those with non-communicable diseases (NCDs) and seeking care in private facilities exhibited a higher WTP. Furthermore, patients with a secondary education level or above generally displayed higher WTP for premiums. Conversely, patients enrolled in private insurance and availing user fee waivers, along with those accessing care in public facilities, demonstrated a lowered WTP for iCHF premiums. These results highlight the need for targeted interventions to address systemic deficiencies and improve access to medicines. Our conclusions is that policies considering NCD status, education levels and income status are important when designing health insurance schemes for the informal sector in Tanzania, with the goal of increasing uptake of CHF.

Household willingness-to-pay for formal residential care for the elderly in an urban setting in Accra, Ghana

BackgroundLong-term, informal care for the elderly in many sub-Saharan African countries is the responsibility of the family. However, urbanization, migration and the gradual nucleation of families is threatening this responsibility. As the burden of long-term care increases, traditional family support may no longer suffice and as such formal systems of care needs to be explored. While formalized care comes at a cost, it is unclear whether households will be willing and able to pay for these services. This study therefore sought to assess households’ willingness-to-pay (WTP) for formal residential care for the elderly in an urban setting in Ghana.MethodsThis was a cross-sectional study, conducted at the La Nkwantanang-Madina Municipality in Accra among 460 households. The study used a mixed sampling design, combining purposive and stratified random sampling techniques. A structured questionnaire was employed to gather data on socio-economic, demographic, health characteristics of the elderly and caregivers. The Contingent Valuation Method (CVM) was used to assess households’ WTP for formal residential care for the elderly, while multiple logistic regression was employed to identify factors influencing households' WTP.ResultsThe study showed that about 72% of households indicated their willingness to pay for formal residential care for the elderly, with an average amount of US$122.35 (US$27.3–US$272.7) per month for the holistic service. Age of household head (OR = − 0.034, p = 0.02), household income (OR = 1.60, p < 0.01), employment status of household head (OR = 2.75, p = 0.01), awareness of the existence of the service (OR = 2.07, p < 0.01), belonging to the richer household (OR = 2.56, p < 0.00) and presence of an elderly member in the household (OR = 2.84, p < 0.01) were all significantly associated with households' WTP for formal residential care for the elderly.ConclusionThe study revealed a significant proportion of households were willing to pay for formal residential care for the elderly. Factors such as age, income, employment status, presence of elderly and awareness of care options were significantly associated with the households' decision-making processes. This increased interest offers a potential market for provision of formalized elderly care homes services within the capital. Raising awareness and benefits is key in unlocking this service package to the population.

Evaluating the Economic Viability of Agro-Ecotourism as a Nature-Based Solution for a Climate Adaptation Strategy: A Case Study of Yuanshan Township, Taiwan

This study applied the contingent valuation method to evaluate the economic viability of climate adaptation policies in the climate-fragile Yuanshan Township (YST), Taiwan, focusing on the balance between forest conservation and local livelihoods. Traditional agriculture in YST is transitioning to agro-ecotourism, supported by leisure-oriented and hillside forest protection policies that attract visitors and cause the local economy to thrive. This research used non-market valuation methods to quantify the value of local recreational resources perceived by visitors at NTD 1002.00 per visitor. The findings indicate that visitors’ willingness to pay for these resources is significantly influenced by their intention to revisit YST, their trust in local conservation efforts, their gender, and their income. The value that visitors place on recreational resources and the aforementioned significant determinants of their willingness to pay highlight the economic potential of agro-ecotourism in supporting both environmental sustainability and community income. This study emphasizes that successful nature-based climate adaptation must consider the economic interests of resource users and local residents. Agro-ecotourism in YST is shown to be a viable policy for balancing forest conservation with societal benefits, providing a model for the sustainable management of local resources. The economic benefits from this transition underscore the feasibility of agricultural transformation for community income generation and climate resilience, demonstrating that environmental and economic goals can be mutually supportive in addressing climate change.

High monetary valuation of regulating forest ecosystem services in Japan: integrating the best-worst scaling and contingent valuation methods

ABSTRACT Effective forest management requires an understanding of socially prioritized forest ecosystem services and their integration into forest management design. Approximately 70% of Japan, our study area, is covered by forests. Therefore, prioritization-based resource allocation play a fundamental role in forest management in Japan. However, there is a lack of clarity regarding which forest ecosystem services the public evaluate the most. Thus, this study evaluates the social priority of 13 forest ecosystem services based on public preferences by employing the best-worst scaling (BWS) technique. Our study also assesses the value of such services by integrating a contingent valuation method with BWS. The survey was conducted using an online questionnaire for Japanese citizens enrolled in a survey company as representatives of the Japanese public in January 2017; 720 responses were analyzed. The BWS results revealed that the freshwater stock was the most valued forest ecosystem service, followed by carbon storage. However, citizens considered cultural ecosystem services to be of lower importance. The mean willingness to pay (WTP) for freshwater stock was approximately USD 23.77, while the mean WTP for inspiration for culture and art was lower at USD 1.13. Our findings indicate that the values of cultural and provisioning services are lower than Japanese taxes for forest management and suggest that forest management should prioritize regulating ecosystem services.

Revealing determinants shaping the sustainable consumption of single-use plastic food container substitutes

With the fast growth of the takeaway sector, waste originating from the consumption of single-use plastic food containers (SUPFC) is increasingly generated and exacerbates plastic pollution. Its substitutes (SUPS), a reliable option for mitigating plastic pollution, are attracting attention from both the public and private sectors. To better understand consumer preferences in reducing plastic pollution from SUPFC, we here establish an intricate fabric of the consumers' cognitive impetus toward SUPS and explore the prospects of combining and enhancing the technology acceptance model and theory of planned behavior framework with additional constructs. We simultaneously analyze variations in Beijing consumers' willingness to pay (WTP) for SUPS via the contingent valuation method. The intention to use (ITU) was found to be positively influenced by the perceived ease-of-use (PEU), attitude (AT), and subjective norms (SN). Conversely, perceived risk exhibited a negative correlation with AT, PEU, and ITU. The results further showed that ITU was positively correlated with income, age, and education. In addition, 95.86 % of the respondents were willing to pay for SUPS, mostly between 3 and 5 RMB (51.18 %). This study delineates a paradigm for elucidating the preference of using SUPS in the context of environmental sustainability and pro-environmental consumption. Such elucidation holds paramount importance in bolstering forthcoming investigations into SUPS utilization and behavioral patterns.