Working Papers in Economics,
University of Gothenburg, Department of Economics

Abstract: This paper is an application of the contingent valuation method on community plantations in the highlands of Ethiopia. A discrete-continuous elicitation format was applied. It was found that there is a problem in applying a closed ended elicitation format in this context with a community resource since a community resource typically implies a community based scenario and such a scenario invites to yea-saying. The wellknown problem of compliance bias is also difficult to avoid in such settings. Application of a closed-ended format under such circumstances would exaggerate the willingness to pay for the good in question. The study asked both spouses in a household for their willingness to pay for a new plantation. The analysis of the bid function shows that there are gender variations in the factors that affect the bids. The common preference model was thus rejected in this application. The analysis also indicates that it might be a good idea to concentrate plantation efforts since there seem to be specialization going on in collection behavior. Women in villages without any existing community plantation are, however, significantly more interested in the establishment of a plantation than men. The aggregate willingness to pay vary dramatically between villages pointing at the need for good selection methods in targeting such interventions.

Keywords: Community plantation; Common preference model; Contingent valuation

JEL-codes: D13; O13; Q23

24 pages, November 18, 2004

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