Estimating Willingness to Pay for Forest Ecosystem Conservation The Case of Wof-Washa Forest, North Shewa Zone, Amhara National Regional State, Ethiopia

Abstract

Most of the times non use value of forest resources are not clearly stated and their contribution to national GDP is underestimated because of lack of measurement methods and techniques for non use values. The conservation activities are neglected either because of financial constraints or lack of attention. The objective of this study was to estimate the total economic value (TEV) households place on improved forest conservation and protection so as to ensure the provision of improved forest goods and services. The study is conducted on Wof-Washa Forest, North Shewa Zone, Amhara National Regional State, Ethiopia. Data were collected through secondary data, key informant interviews and household survey using a CVM. A total of 353 households were surveyed from four kebeles. In order to elicit the Willingness to pay (WTP) of households for the protection and conservation of this forest, the DBDC value elicitation technique with follow up open-ended question was used. Descriptive statistics and bivariate probit econometric model was used to estimate both mean WTP and to identify factors determining the households' WTP for the forest ecosystem protection and conservation. 65% of the surveyed respondents were WTP for the proposed project so as to improve forest service. The mean WTP for the double bounded bivariate probit estimate ranged from Birr 42 to 35.60 per month for the initial and for the follow up bids, respectively. The bivariate probit model showed gender, age, education level, income, bid price and distance from the forest significantly affecting the WTP for forest conservation. Using the second bid the aggregate mean WTP is estimated at Birr 1.7 million per year. Though, Wof-Washs forest is getting degraded due to illegal activities and encroachment still it supplements the local people’s livelihood. Keywords: Total economic value, Non use values, Contingent valuation, willingness to pay