Applying contingent valuation to measure the economic value of forest services: a case study in Northern Jordan

Abstract

This paper reports an attempt to apply the contingent valuation method (CVM) to value ecosystem services in Jordan’s northern forests. I employed the CVM to obtain an estimate for the population’s willingness to pay (WTP) for restoration and conservation of services in this area. I sampled 300 rural households through in-person interviews, then applied two econometric models to examine the incentives for WTP. The aggregate present value benefit is 3,569,556 Jordanian Dinar for the whole of Jordan’s northern forests; this valuation is based on the amount participants were willing to contribute to maintain forest ecosystem services. The conservation cost is assumed to reflect the direct value gained from human utilization of forest services. Results suggest a correlation between WTP and household income, as well as WTP and classification of services. I assess that income and forest service type most directly shaped participants’ WTP for forest conservation. The study also indicates that the CVM can successfully be applied to Jordan and may be a viable and potentially useful direction for future research on environment valuation in other developing countries in the Middle East.

Keywords:

• forest services
• contingent valuation method
• conservation
• economic value
• Jordan

Acknowledgments

The author would like to thank Abdul Hameed Shoman Fund for Supporting Scientific Research in Jordan for their kind financial support of the study. I am also grateful to the University of Jordan, scientific research fund [grant number 1441] for providing the support of field trips. Thanks are also extended to Yolla Alasmar and Marwan Alraqqad for preparing the map using the GIS tools. I am very grateful to the informants of the villages surrounding the three forest types who provided us time and information.