Estimating the Economic Value of Wildlife: The Case of Addis Ababa Lions Zoo Park
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Date
2011-06
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Addis Ababa University
Abstract
Environmental and natural resources such as air, water, forests and wild animals give many advantages to human beings. However, the absence of market for these resources negatively affects the well-being of human beings by reducing the benefits that can be generated from these resources. In this case, economic valuation method helps to find the price or economic values attached to natural resources. Therefore, the proper valuation of non-market environmental commodities such as viewing wildlife has significant policy implications.
The main purpose of this study is to estimate the total economic value of Addis Ababa Zoo Park using environmental economic tools. This study used the Individual Travel Cost Method (ITCM) on 158 on-site visitors, to estimate the value of viewing wildlife of Addis Zoo Park and the Double Dichotomous Contingent Valuation Method (DDCVM) on 90 respondents to investigate the mean WTP for the non use value of the park. The study used seemingly unrelated bivarite probit model to derive the demand function for the recreational use value of wildlife and truncated probit model to estimate the non use value contribution of wildlife. The regression result showed that travel cost, monthly income and SUP are important determinants of the recreational demand of the site. On the other hand the first bid price, monthly income, RSW and age are important determinant of willingness to pay for the non use value part of wildlife. The result of the study also showed that the potential annual use value of the park was estimated to be 11, 767,287 ETB per annum and the annual non use value of the wildlife is 17,160,634 ETB. Therefore, the annual total economic value of the park is approximately 22.5 times higher than the current revenue. Results of this study are very important to assist policy makers especially in revenue generation. This information can be used to estimate the benefits of further investment of the park, to price this site according to demand if there are budget limits, and in particular to invest in the protection of threatened wildlife
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Contingent valuation method, Travel cost method, Willingness to pay