Valuating Households’ Willingness to Pay for Conservation of Forest Coffee (Coffea arabica) Application of Contingent Valuation Technique: Evidence From the Kafa Zone Southwest of Ethiopia

Abstract

This research is driven by the rapid degradation of Ethiopia’s native forest coffee due to agricultural expansion and limited community engagement in conservation efforts, threatening both biodiversity and local livelihoods. The primary objective is to assess the factors influencing households’ willingness to pay (WTP) for conserving Coffea arabica, a vital genetic resource. Using a contingent valuation method (CVM), data were collected through structured questionnaires from 164 households in the Kafa Zone, where forest coffee has deep cultural and economic significance. The bivariate probit model was employed to analyze how various socioeconomic factors (income from coffee, age, gender, property rights, and education) and institutional influences (customary laws and property rights) affect WTP for conservation. Key findings indicate that income from forest coffee, customary laws, traditional institutions, and extension contacts positively impact households’ WTP, while age and sex also play significant roles. Younger household heads, increased extension contact, and stronger property rights were associated with higher WTP. The average annual WTP per household was calculated as 430 Ethiopian Birr. The study recommends enhancing community involvement through policies that integrate economic incentives with customary governance systems, promote equitable benefit‐sharing, and strengthen property rights. By aligning conservation policies with local socioeconomic contexts, the findings underscore the potential for sustainable forest management and improved community livelihoods in Ethiopia’s coffee‐producing regions.