• RAM K. SHRESTHAEmail author


We estimate the compensation required by the local communities to forego access to the natural resources within the Koshi Tappu Wildlife Reserve (KTWR), Nepal using the contingent valuation method (CVM). In addition to contributing a CVM application from a seldom studied location to the literature, this case illustrates the sensitivity of WTA estimates to the analytical technique adopted. We analyze households’ willingness to accept (WTA) compensation using Tobit and double-hurdle regression models that account for the censored distribution of WTA and nested yes/no decision implicit in the WTA responses. The average WTA of a household residing in the vicinity of KTWR is estimated to be US $238, which amounts to nearly $ 1.64 million for the neighboring region. The results provide a basis to address local people’s concerns in the process of sustainable management of natural resources and wetland ecosystems in KTWR, Nepal.


economic valuation Nepal park-people conflict protected area 



We greatly appreciate the financial support for this research provided by the Asian Institute of Technology, Thailand, and the Canadian Agency for International Development, Thailand. We would also like to thank Dr. Zakir Hussain (Head, IUCN Asia Regional Office, Thailand) and Dr. Jay Prakash Sah (Postdoctoral Research Associate, Florida International University, USA) for his valuable inputs on the survey research design, Dr. John Loomis (Professor, Colorado State University, USA) for his suggestions on data analysis, and two field research assistants, the KTWR staff, and survey respondents for their time, commitments, and assistance during the field survey. Florida Agricultural Experiment Station Journal Series R-09048.


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Copyright information

© Springer Science+Business Media, Inc. 2006

Authors and Affiliations

    • 1
    Email author
    • 1
    • 2
    • 3
    • 2
  1. 1.School of Forest Resources and ConservationUniversity of FloridaGainesvilleUSA
  2. 2.Department of Agricultural and Resource EconomicsColorado State UniversityFort CollinsUSA
  3. 3.School of Environment, Resources and DevelopmentAsian Institute of TechnologyKlong LuangThailand

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