Analysis of the Factors Influencing Willingness to Pay and Payout Level for Ecological Environment Improvement of the Ganjiang River Basin

Xiong, Kai; Kong, Fanyu; Zhang, Ning; Lei, Ni; Sun, Chuanwang

doi:10.3390/su10072149

Cited by 52 publications

(28 citation statements)

References 46 publications

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“…Similarly, households with higher income levels expressed willingness to pay more money than low-income households. The findings correspond with Mahlatini et al [8], Xiong et al [44], Sylvie [45], and Lipton et al [46], who established that households with higher disposable incomes had more income to protect and would see a benefit in improving the ecological environment of the river basin.…”

Section: Factors Affecting Pay-out Levelsupporting

confidence: 88%

“…Table 5 reveals that the decision to pay for the aquatic resources from the Linthipe River was significantly influenced (p = 0.05) by education level (p = 0.006), whether the household uses the resources or not (p = 0.004), community support in the management of the resources (p = 0.000), household income (p = 0.010), and distance of the household from the river ecosystem (p = 0.010). Educational level has a significant positive correlation with community members' WTP, which implies that the higher the member's educational level, the stronger is the willingness to pay [44]; the more years one spends schooling, the greater the understanding about the ecological importance of natural resources, resulting in having a stronger willingness to pay for conservation programs. Usage of the aquatic resources had a significant negative correlation with community willingness to pay.…”

Section: Factors Affecting Wtpmentioning

confidence: 99%

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Does Paying for Aquatic Resources Matter? A Case of an African Riverine Ecosystem

2021

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Valuation of environmental goods and services has an important role to play in the protection and conservation of riverine resources. However, the literature shows a dearth of information regarding factors that influence people’s willingness to pay (WTP) for riverine resources. This research study was undertaken to find out key factors that affect the willingness of people to pay for the conservation of aquatic resources in the lower section of the Linthipe River in Malawi. Data was collected through household interviews, focus group discussions, key informant interviews, and contingent valuation (CV) surveys. The study noted that communities were willing to offer $3.51 per year for the conservation of aquatic resources in the river. This study established that the people’s WTP is a function of education level, household usage of the goods and services, community support in the management of the resources, household income, and distance of the household from the river ecosystem. The study further discovered that the pay-out level of the users along the Linthipe River was driven by household usage of resources from the river, period of stay in the area, and level of household income. Our recommendation is that government and development partners should popularize the important role played by rivers and streams to surrounding communities and beyond to appeal for more support from users. The authorities must further empower the communities along the rivers and streams to sustainably manage the aquatic resources for the continued appreciation of aquatic resources by future generations.

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Section: Factors Affecting Pay-out Levelsupporting

confidence: 88%

Section: Factors Affecting Wtpmentioning

confidence: 99%

Does Paying for Aquatic Resources Matter? A Case of an African Riverine Ecosystem

2021

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“…Methods that utilize consumer willingness to pay for the value of environmental resources include, Contingent Valuation Method (CVM), cost of illness approach, auction on the pilot market, conjoint analysis, market approach, responsibility cost method, and trade analysis (Caswell, 1998) [7]. Among them, the application of CVM in the assessment of environmental values is generally acknowledged as the most mature and appropriate research method [35]. This paper adopts the CVM double-bounded dichotomous choice method to inquire if consumers are willing to purchase low-carbon rice when the price is fixed.…”

Section: Sample Characteristicsmentioning

confidence: 99%

How Environmental Beliefs Affect Consumer Willingness to Pay for the Greenness Premium of Low-Carbon Agricultural Products in China: Theoretical Model and Survey-based Evidence

Zhong

Chen

2019

Sustainability

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The increase in the supply of low-carbon agricultural products is crucial to reduce carbon emissions, but the production of such products incurs additional input costs and thus the crux of the low-carbon agricultural products market development lies in how such cost can be shared in a reasonable manner. The increase of consumer willingness to pay and the premium level that consumers would pay for green products hold the key to address this challenge. For that reason, this paper first constructs a behavioral game model to explore how environmental beliefs would affect consumer willingness to pay for the greenness premium. Then, the paper proceeds with empirical analyses on factors influencing consumer willingness to pay for the greenness premium by using micro-survey data of Chinese consumers when facing the choices of low-carbon rice in the cities of central China. The empirical research suggests that, although the average greenness premium that Chinese consumers are willing to pay for low-carbon agricultural products is low, the greenness premium will be stronger when consumers have higher environmental beliefs. We also find the impacts of environmental beliefs on the willingness to pay as well as the greenness premium levels that consumers are willing to pay for low-carbon agricultural products increase with education attainment and family income, but do not change with age. Findings in this study carry several important policy implications. To encourage green consumption that facilitates green production, the government should devote attempts to promote consumers’ environmental beliefs and also apply differentiated public policy that targeting at different types of consumers.

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“…Details of the CE that we used are described elsewhere, and we provide only a brief overview. The attributes and attribute levels (Table 1) were based on a review of the literature (Xiong et al 2018), initiatives of new local water improvement plans (AAWSA 1994; AAWSA 2004; AAWSA 2011), and expert opinions. The experimental design presented in this study is a full factorial design that uses every possible combination of attribute levels.…”

Section: High Risk Of Contaminationmentioning

confidence: 99%

Valuing the water supply: ecosystem-based potable water supply management for the Legedadie-Dire catchments, Central Ethiopia

2019

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Background: There is a substantial interest in the values that consumers place on drinking water quality and supply. Financial resources are crucial to improving the urban potable water supply in developing countries that are characterized by low-cost recovery rates and a high and rapidly growing demand for more reliable services. This study examined households' willingness to pay (WTP) for the improvement of water services by identifying their water choice decisions and the mode of water supply that they prefer the water supply authority to use among several alternative water supply options. Stated-preference data were collected from 322 randomly selected households in Addis Ababa, who were presented with three sets of choices (three alternative bundle choices, including the reference scenario). The data were analyzed using the mixed logit WTP space model. Three approaches to modeling the distribution of WTP (fixed, uncorrelated, and correlated) using mixed logit WTP space models were compared. Results: Three-quarters of the households agreed to contribute money toward ecosystem-based water supply management (EBWSM) intervention programs on a monthly basis. The average contribution that the respondents were willing to pay was 150.5 Ethiopian Birr (ETB) as a one-off lump sum to kick off the EBWSM activities. Most of the respondents chose a bundle of water supply options that provides risk-free and high-quality water with no months of shortages than moderate water quality that is safe to drink and palatable with 1 month shortages annually. This implies that households would need to be supplied with risk-free, high-quality water without interruption at an appropriate flow pressure. The model with correlations fitted the data well with the highest simulated log-likelihoods at convergence and gave the best estimate of the households' WTP for water improvement. Nearly 46% of the sampled households were willing to pay more than 33 ETB per month, and 49% of the households were willing to pay between 21 ETB and 33 ETB per month for the monthly water bill. Overall, approximately 95% of the sampled households were willing to pay more than 21 ETB. Conclusion: Customers are willing to pay to avoid most types of water supply restrictions. Moreover, WTP is sensitive to the scope of service improvement, income, affixed price, and elicitation method. In summary, mixed logit WTP-space models can help accurately predict household-level WTP, which can be used to select improvements in drinking water access and services in the Legedadie-Dire catchments.

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Analysis of the Factors Influencing Willingness to Pay and Payout Level for Ecological Environment Improvement of the Ganjiang River Basin

Cited by 52 publications

References 46 publications

Does Paying for Aquatic Resources Matter? A Case of an African Riverine Ecosystem

Does Paying for Aquatic Resources Matter? A Case of an African Riverine Ecosystem

How Environmental Beliefs Affect Consumer Willingness to Pay for the Greenness Premium of Low-Carbon Agricultural Products in China: Theoretical Model and Survey-based Evidence

Valuing the water supply: ecosystem-based potable water supply management for the Legedadie-Dire catchments, Central Ethiopia

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