Communities’s Willingness to Pay for Protection of Environmental Resources from Oil Spillage in Delta State: A Contingent Valuation Approach

Abstract

Despite the huge benefit crude oil has to the Nigerian economy, its exploration and exploitation activities have resulted in severe incidence of oil spills that has impact on the environment. The paper examined the willingness to pay for protection of environmental resources damage caused by oil spillage in Uzere and Emadadja communities in Delta State. 330 questionnaire were administered on the residents in the communities out of which 250 of the questionnaire were returned for analysis representing 76% response rate. The data collected were analysed using the Frequency Distribution, and Binary Logistic Regression Model based on the Contingent Valuation Method. The Frequency Distribution was used to determine the socio–economic characteristics of the residents while the Binary Logistic Model based on the Contingent Valuation Model was used to calculate the total benefit and explain the socio – economic factors influencing the communities’ willingness to pay (WTP) for environmental resources. The results showed that majority of the respondents were willing to pay for environmental protection. The mean WTP was N948,018 per respondents. Also, religion (2.826), household size (3.103) and nature of job (5.715) were the important socio – economic factors that influenced the respondents willingness to pay (WTP) for environmental resources protection. The paper recommended that government should do all within its power to protect environmental resources of its citizens as this will enhance the peoples sense of belonging in the country and the communities in particular.

Keywords: Community, Environmental Protection, Oil Spillag, Willingness to pay


Article Review Status: Published

Pages: 67-76 (Download PDF)

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