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Valuing biodiversity attributes and water supply using choice experiments: a case study of La Campana Peñuelas Biosphere Reserve, Chile

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Abstract

The main objective of this study is to assess public economic preferences for biodiversity conservation and water supply and to analyse the factors influencing those preferences. A survey based on the choice experiment method was carried out at Peñuelas National Reserve, Chile, an area that is threatened by both occasional forest fires and the growing housing market. The input of local administrators was used to define environmental attributes of the area related to biodiversity conservation and water supply. Attributes were selected for analysis by the choice experiment. The selected attributes were the following: existence of endemic orchid species, chances of observing animals with scenic attraction, additional protection for an endemic amphibian, and availability of drinkable water in the future. A monetary variable consisting of an increase in the rate for entry to the area was also incorporated to estimate willingness to pay (WTP) for additional protection for the selected attributes. Three hundred four Chilean visitors to the reserve were randomly selected for interviews. Econometric analysis based on the Theory of Utility Maximization shows that visitors are willing to pay to protect the selected attributes. WTP values for the attributes range from CHP $2,600 ($5.4) to $6,600 ($14) per person per visit. The results of this research provide reserve managers information about tradeoffs that could be used to enhance public support and maximise the social benefits of nature conservation management programmes.

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Notes

  1. According to Pearce and Moran (1994), conceptually, the TEV of an environmental resource consists of its use value (UV) and non-use value (NUV). A use value is a value arising from the actual use made of a given resource. Use values are further divided into direct use values (DUV), which refer to actual uses such as fishing and timber extraction, indirect use values (IUV), which refer to the benefits deriving from ecosystem functions such as a forest’s function in protecting the watershed, and option values (OV), which are values approximating an individual’s willingness to pay to safeguard assets for the option of using them at a future date. Non-use values are usually divided between a bequest value (BQ) and an existence value (EV). Bequest values measure the benefit accruing to any individual from the knowledge that others might benefit from a resource in the future. Existence values refer to the benefit derived from the existence of any particular asset.

  2. Indicates the chances of observing a particular kind of animal.

  3. Not presented here.

  4. Embedding effects occur when one good is valued differently if it is included in a bundle of other goods as compared to an individual valuation of the good (Kahneman and Knetsch 1992; Dehnhardt and Meyerhoff 2002). The phenomenon is also known as insensitivity to scope (i.e., insensitivity to the quantity information presented to respondents).

  5. An English translation of the questionnaire is available from the author upon request.

  6. The validity of using photographic representations to assess perception of nature was established by different studies (e.g., Shuttleworth 1980; Kaplan and Kaplan 1989). When individuals viewed photographs, the information within the image was not the only factor that influenced their attitude because the images generated memories of past experiences and previous knowledge (Williams and Cary 2002).

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Acknowledgements

Funding for this project was provided by the Vice-Rector for Research and Development at University of Chile. I thank the many students who helped with the survey conduction and data coding. My thanks to Mr. Claudio Ilabaca, representing the managers of the Peñuelas Reserve, for his assistance and support.

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Correspondence to Claudia Cerda.

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Cerda, C. Valuing biodiversity attributes and water supply using choice experiments: a case study of La Campana Peñuelas Biosphere Reserve, Chile. Environ Monit Assess 185, 253–266 (2013). https://doi.org/10.1007/s10661-012-2549-5

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