A seemingly unrelated bivariate probit model to estimate the non-use value of wildlife
Keywords:
Willingness to pay, Seemingly Unrelated Bivariate Probit Model, dichotomous choice elicitation procedures, Non-Use ValueAbstract
The benefits of wildlife and natural resources, both in their use and non-use, are significant for humans. A market must exist to ensure that these resources are utilized efficiently and optimally. In a study involving 900 respondents, a Seemingly Unrelated Bivariate Probit Model (SUBPM) was used to analyze the non-use value of wildlife. The regression results from the SUBPM revealed that the willingness to pay (WTP) for the non-use value of wildlife is affected by the initial bid price, monthly income, the respondent’s connection with wildlife, and age. Furthermore, the Krinsky Robb estimation for double dichotomous WTP indicated that the average annual willingness to pay for wildlife conservation is estimated at 8 Ethiopian Birr (ETB) per person and 1,627,290 Ethiopian Birr for the total population. The study suggested that dichotomous choice or double-bounded elicitation procedures are preferable to open-ended ones. These results are encouraging concerning the potential to measure the non-use value of wildlife, which could assist park management and decision-makers in implementing welfare measures for the non-use value component of the park, ensuring the sustainable use of wildlife through conservation activities.
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