Tag Archives: Willingness to pay

A Latent Class Approach to Farmers’ Preference for Pona Seed Yam Certification System in Ghana (Published)

The study employed choice experiment methods and latent class model to assess farmers’ preferences for seed yam certification system and their willingness to pay for certified seed yam in Kintamop, East Gonja and Afram Plains Districts in Ghana. A total of 9120 choice experiments were elicited from 380 yam farmers. The study identified three classes/ market segments of farmers regarding preferences for Pona seed yam. The results show that farmers have more utility towards fully certified seed yam and are willing to pay ¢719.6 for a bunch of fully certified seed yam. The findings indicate that the likelihood that a randomly chosen farmer would prefer fully certified seed yam was 88.9%.  Farmers have high utility towards medium sized seed yam for Pona variety and were willing to pay ¢12.5 for this attribute. The results demonstrate market potential for commercial seed yam certification system in Ghana.  

Keywords: Choice Experiment, Market Segmentation, Seed Yam, Willingness to pay

A Latent Class Modelling Approach to Evaluating Farmers’ Preferences For Pona Seed Yam Certification Systems and Their Willingness to Pay in Ghana (Published)

The study employed choice experiment and latent class model to assess farmers’ preferences for seed yam certification system and their willingness to pay for certified seed yam in selected yam producing Districts in Ghana. A total of 9120 choice experiments were conducted to elicit data from 380 yam farmers. The study identified three classes/ market segments of farmers regarding preferences for Pona seed yam. The results show that farmers have more utility towards fully certified seed yam and are willing to pay GH¢719.60 (US$189.4) for a bunch (100 tubers weighing about 45kg) of fully certified seed yam. However, farmers were found to have high utility towards medium-sized Pona seed yam and are willing to pay a premium of GHC¢12.5 (US$3.3) for this attribute. The study has demonstrated high potential for the commercialization of seed yam production in Ghana through a formal seed yam certification system.  

Keywords: Choice Experiment, Latent Class Modelling, Market Segmentation, Seed Yam, Willingness to pay

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

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

TOWARDS A SUSTAINABLE ALLOCATION OF POTABLE WATER IN GHANA: EVIDENCE FROM KUMASI (Published)

The provision of potable water for human sustenance both now and in the future is one of the most critical issues in the world today. This paper sought to assess the sustainability of potable water distribution in Ghana through the Contingent Valuation Method in Kumasi, Ghana’s second largest urban centre. Willingness-to-pay values were elicited by means of a bidding game technique through administered questionnaire to communities in Kumasi, where potable water supply was either non-existent or very irregular. The analysis shows that Ghana Water Company Limited (GWCL) could increase current tariffs by about 300% without hurting consumers, since, that would rather increase welfare considerably and facilitate sustainable allocation of potable water. A sizeable consumers’ surplus exists, which is an indication of households being susceptible to extortion by water vendors. This requires urgent government intervention to save some poor residents of Kumasi from undue exploitation as well as the return to the consumption of unwholesome water that would increase pressure on medical and Health Insurance resources.

Keywords: Consumers’ Surplus, Ghana, Potable Water, Welfare, Willingness to pay

MEASUREMENT OF THE WILLINGNESS TO PAY BY THE POPULATION OF TEÓFILO OTONI CITY, MINAS GERAIS – MG STATE, BRAZIL, FOR THE PRESERVATION AND IMPROVEMENT OF TIRADENTES SQUARE, USING CONTINGENT VALUATION METHOD (Published)

This study aimed to economically measure the Tiradentes Square of Teófilo Otoni City, in the State of Minas Gerais, Brazil, considering its tangible and intangible aspects. The Contingent Valuation Method (CVM) was chosen to achieve the proposed goal, because it allows determining the monetary value of natural resources based on the user’s preferences. This study showed that respondents are willing to pay for the maintenance and conservation of Tiradentes Square, showing their vow of justified protest mainly by assigning this responsibility to the City Hall for its maintenance and repairs. The results of this study showed that economic value for the Tiradentes Square reached R$ 9.974.537,22 (R=Real, expressed in Brazilian currency). It was concluded that the population realize the importance of that good, but believe to be assigned to the public power the responsibility for its preservation.

Keywords: Contingent Valuation Method, Environmental economic valuation, Willingness to pay