nep-dcm New Economics Papers
on Discrete Choice Models
Issue of 2012‒12‒06
one paper chosen by
Philip Yu
Hong Kong University

  1. Non-market Valuation in Developing Countries: Estimating Benefits of Managing Invasive Plants Using Choice a Choice Experiment By Rajesh Kumar Rai; Helen Scarborough

  1. By: Rajesh Kumar Rai; Helen Scarborough
    Abstract: There are limitations associated with the application of non-market valuation techniques, including choice experiments, in subsistence economies. In part, this is due to the concern that using money as a mode of contribution may not capture the potential contribution of low-income households. To address this limitation, respondents in this study were provided with the option of contributing towards the management of invasive plants in labour terms if they were unwilling to contribute in monetary terms. The results show that the existing practice of using dollar values to estimate willingness to contribute may disproportionately exclude the concerns of some groups within the community. The analysis also indicates that allowing respondents to express their willingness to contribution in labour increases their participation in environmental decision-making processes and hence, increases the estimated value of forest ecosystem services. This study contributes to the limited empirical literature on the development of non-market valuation surveys, including CEs, in low-income countries in general and rural areas in particular.
    Keywords: Choice experiments, Willingness to contribute, low-income communities, mode of contribution
    Date: 2012–11–16

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