Valuing the Economic Benefits of Controlling Off-Site Effects of Soil Erosion: Empirical Evidence from the Eastern Highlands of Ethiopia
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Date
2013-07
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Abstract
This study seeks to estimate the economic benefits of controlling off-site effects of soil
erosion and identify determinants of WTP in Kufanzik area of eastern highlands,
Ethiopia. A DB CVM survey was conducted on 134 randomly selected rural
households to elicit preferences for controlling the off-site effects. Using a Pooled
Probit model we have estimated the mean WTP & identified the determinant factors.
The result indicates that controlling the off-site effects of soil erosion offers a welfare
gain of 84.41 ETB. Income, level of education and off-site damage experience are the
significant factors affecting WTP. The estimated values are indicative of the WTP
potentials of the local community and hence designing a bottom-up approach of
intervention might work better. In line with this the study considers the possibilities of
implementing a market based mechanism of payment for environmental services
(PES) and recommend further studies on WTA.
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Natural Resource and Environmental Economics