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Determinants of Farmers’ Willingness to Pay and Its Level for Ecological Compensation of Poyang Lake Wetland, China: A Household-Level Survey

Year: 2014

Type: article

Abstract: This study examines the determinants of farmers’ willingness to pay (WTP) and their payment levels for ecological compensation of the Poyang Lake Wetland in China. We developed a farmer household survey and gathered 292 effective responses. The contingent valuation method (CVM) and Heckman’s two-step model were employed for the empirical study. Results show that 46.58% of farmers are willing to pay ecological compensation, with an average price of $64.39/household per year. The influencing factors that significantly influence farmers’ WTP include household income, residential location, emphasis on improvement of wetland resources, arable land area, and contracted water area. In addition, household income, residential location, arable land area, and contracted water area are significantly related to their payment levels. The results of this empirical study inform important policy implications and recommendations.

Source: Sustainability

DOI: 10.3390/su6106714

Authors: Fanbin Kong, Kai Xiong, Ning Zhang

Institution: Jiangxi University of Finance and Economics

Language: English

Topic: Economic and Environmental Valuation

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: No poverty, Life on land

Open Access status: gold

Estimated APC paid: $2,896