Umeå Economic Studies,
Umeå University, Department of Economics

Abstract: This paper contributes with an applied policy analysis of the predator preservation

policy in Sweden. We estimate the social benefits from preserving the four large

predators in Sweden by applying a contingent valuation approach. The vehicle we use

to fulfil our objectives is data from a survey that were mailed out in the spring of 2004.

We find that the Swedish population is divided in half concerning their support for the

predator policy package and that the overall mean WTP for preserving the four large

predators in Sweden is approximately SEK 290. We also find that the WTP differ

substantially between different regions in Sweden. Respondents in Stockholm have the

highest WTP whereas the lowest WTP is found for respondents living in Wolfterritories.

Finally we find that our measure of the social value is sensitive with respect

to response-uncertainty. When the respondents are allowed to be uncertain about their

valuation they state a higher value. The main conclusion is that the social-value of

preserving the four large predators in Sweden may be negative since the stated benefits

seem to be rather small.

Keywords: Contingent valuation; WTP; endangered species

JEL-codes: Q22; Q26; Q28

22 pages, February 10, 2006

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