Valuation of Watershed and Fisheries of Lake Tana: Application of Choice Experiment

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In this thesis. the technique 0/ choice experiment was applied/or valuation 0/ Lake Tana's fishelJl and watershed. Two attributes - fishing control and lake side plantation were identified as relevant attributes that must be included in the choice experiment. A monetcliJi allribute - payment/or fishing permit was also included. The fishermen actively participating in fishing on Lake Tana were taken as re:,pondents. Multinomial and random parameter logit models were used /01' estimation. All the attributes included were significant factors in affecting the probability 0/ choosing an alternative scenario. Fishermen were more concerned about fishing control i.e. they give higher value to .fishing control than lake side plantation. This was implied by their marginal willingness to pay /01' the attributes. The marginal willingness to pay .for fishing control was 15 birr per month while lor lake side plantation it was 50 cents per month. Some socioeconomic variables were included in the modeling. Monthly household income, years 0/ education, and /amily size were found to be significant at the standard levels 0/ significance. Moreover. an economic welfare measure was calculated lor two scenarios. The results suggest that .fishermen are willing to pay 57 birr per month lor a moderate scenario improvement and 93 birr per month lor aggressive scenario improvement in those allribUies.


A Thes is Submitted to the School of Graduale Studies or Addis Ababa University in Parti al Fullillm ent of lhe Req uirements i()r the Degree of'Masler of Sc ience in Econo mi cs under Resource and Environmental Eco nomi cs Stream


Choice experiment, Economic welfare measure