Estimating the wetland rental fee: a case study involving a Taiwan wetland

Abstract

Wetlands provide many functions that are both economic and recreational and are valuable in terms of their ecological diversity, while at the same time being nonmarket value products. The purpose of this study is to estimate the optimal wetland rental through estimations of both the demand and supply functions in relation to wetland. The wetland supply function is directly estimated based on the data provided by the owners of the wetland, while the estimation of the wetland input demand function involves using the bootstrapping and contingent visitation approaches. Such estimation approaches could also be applied to other nonmarket value products that give rise to environmental externalities. The estimation of rental fee could provide a long-term leasing contract that gives the landlord with a particular rent to lease their lands to support a wetland eco-tourism park to maintain wetland for substantial management. Several environmental management policy implications are also addressed.

Notes

¹ According to IUCN, the Black-browed Albatross (Thalassarche melanophrys) moved from Vulnerable in 2001 to Endangered in 2003. All 21 species of albatross are now identified as globally under threat (compared to just 3 in 1996 and 16 in 2000). All are undergoing long-term declines, with significant numbers drowning after being caught accidentally on baited hooks set by long-line fisheries.