WILLINGNESS TO PAY OF URBAN RESIDENTS IN KIEN GIANG FOR THE ECOSYSTEM CONSERVATION OF U MINH NATIONAL PARK

Abstract

This paper could assist policy makers in formulating efficient and sustainable wetland management policies in U Minh forest and provide useful information to estimate welfare losses due to ecosystem reductions and analyze the trade-off between biodiversity and economics. A choice experiment is employed to estimate the willingness to pay of urban residents in Kien Giang province for ecosystem conservation program in U Minh forest. An indirect utility function and willingness to pay for ecosystem conservation attributes were applied using the approach of choice modeling with the analysis of multinomial logit model. The study found that urban residents in Kien Giang province accepted their willingness to pay of VND 1,350 monthly increase of household water bill for an additional percent of healthy vegetation, VND 1,120 for decreasing 1% of people affected by air pollution, VND 15,240 for the research and education opportunity and VND 214 for one farmer re-trained.

Keywords: Choice Experiment, Choice modelling, Ecosystem Conservation, Marginal willingness to pay.