Does location of the households' matters? Identifying the households' willingness to pay and preference heterogeneity in advancement of vulnerable ecosystem services: An approach of choice experiment.

ABSTRACT

The present research underlines the need to expand far outside bundling or hierarchical providing strategy that often focuses on a specific habitat or ecosystem and creates a location-based strategy that considers how dependency in other parts of the region with ecosystem functions and processes leads to complements and resources' trade-offs. Thus, for assessment of spatial heterogeneity based on willingness to pay (WTP) for upgrading environmental attributes across Heihe River Basin (HRB), a choice experiment survey was carried out in the entire river basin. The HRB is one of the big inland river in the Northwestern region of China and is selected on basis of its geomorphological and geographical significance. A sum of 1679 individuals were interviewed through choice experiment technique from whole river basin consisting of five main cities and 33 adjoining rural areas. The Random Parameter logit model, Krinsky-Robb technique as well as delta method were applied for the evaluation of spatial heterogeneity and estimation of individual specific WTP, respectively. Spatial heterogeneity is verified among sampled individuals' preferences about upgradation of environmental attributes, such as, observed preferences of individuals' and their varying corresponding WTP amounts for per unit's upgradation in agriculture product quality, greenhouse gases reduction, farmland landscape, and biodiversity, which reflects heterogeneous tastes and preferences of the selected individuals. In addition, the assessed outcomes for identifying the impacts of distance decay through random parameter logit model depicted the vital role of distance influence on respondents' WTP for restoring the degraded environmental attributes, such that among 3 ad hoc distance bands, WTP of those sampled individuals who are in proximity of ≤ 10 km to HRB is more than the rest of the individuals, i.e., individuals living in the range of ≤ 20 km and > 20 km. For instance, WTP for agriculture product quality is 119.147 CNY/year in ≤ 10 km and is higher than the remainders.