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Pricing ecological services: Willingness to pay for drought mitigation from watershed protection in eastern Indonesia
Author(s) -
Pattanayak Subhrendu K.,
Kramer Randall A.
Publication year - 2001
Publication title -
water resources research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.863
H-Index - 217
eISSN - 1944-7973
pISSN - 0043-1397
DOI - 10.1029/2000wr900320
Subject(s) - contingent valuation , willingness to pay , watershed , ecosystem services , valuation (finance) , agriculture , work (physics) , watershed management , business , natural resource economics , distribution (mathematics) , environmental resource management , environmental science , agricultural economics , water resource management , geography , economics , ecology , ecosystem , mathematics , machine learning , computer science , biology , microeconomics , mechanical engineering , mathematical analysis , archaeology , finance , engineering
In this study we estimate local economic values of ecological services provided by protected forest watersheds in Ruteng Park in eastern Indonesia. Our use of contingent valuation (CV) methodology for pricing drought mitigation benefits to local farmers extends previous work by deriving measures of willingness to pay in terms of incremental agricultural profits. On the basis of the theoretical and content validity of estimated models we find that CV can be used to value complex ecological services in a rural developing country setting. The estimated parameters provide policy and management information regarding the economic magnitude and spatial distribution of the value of drought mitigation.