Ethiopia has many lakes, the greater part of which is found in the Rift-valley, that are central for the development of economy of the country. One of these Lakes is Lake Koka, which is found inside the Ethiopian Rift Valley, and is an artificial lake built in 1960 to generate hydroelectric power. In spite of different advantages provided by Lake Koka, absence of powerful administration, uncontrolled irrigation, intensive agriculture and different human made activities has prompted to the degradation of the wetland. Human made activities such as, using wetland as waste disposal, over grazing, etc. aggravate the problems of the lake. To assign monetary values for the multi-functions and services offered by this Lake wetland ecosystem, this study applied choice experiment valuation method by identifying five attributes i.e. fish stock, biodiversity, water quality, availability of water and monetary payment. Multinomial logit, random parameter logit and latent class models were used to analyze the data collected from a sample of 200 respondents. The marginal willingness to pay for the improvement of water availability attribute is the highest which is birr 55 and it is significant at 1% level. Respondent’s willingness to pay for an increase in the level of water quality of Lake Koka and biodiversity from current situation of the lake, other things being constant, is birr 42 and birr 12 annually respectively. Respondents gave more value to the availability of water than biodiversity and water quality attributes.
| Published in | Journal of Investment and Management (Volume 8, Issue 5) |
| DOI | 10.11648/j.jim.20190805.11 |
| Page(s) | 76-85 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2020. Published by Science Publishing Group |
Koka Lake, Choice Experiment, Multinomial Logit, Mixed Logit, Random Parameter Logit, Latent Class Model
| [1] | Adamowicz W. et al. (1994). Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities. Journal of Environmental Economics and Management. |
| [2] | Adamowicz, W., J. Louviere and J. Swait (1998). Introduction to Attribute-based Stated Choice Methods. NOAA-National Oceanic Atmospheric Administration Washington, USA. |
| [3] | Ahmed s. (2014). Consumers' Willingness to Pay for Environmental Attributes of a Cut Flower in Ethiopia: A Choice Experiment Approach. |
| [4] | Ajibola M. (2012). A Study of Wetland Valuation Practice for Compensation in The Niger Delta, Nigeria. |
| [5] | Alpizar, F., F. Carlsson and P. Martinsson (2001). Using Choice Experiments for Non-Market Valuation; Working Paper in Economics no. 52, Department of Economics, Goteborg University. |
| [6] | Ayenew. (2007). The changing face of the Ethiopian Rift-valley lakes and their environs. |
| [7] | Bennett, J. and Blamey, R. (2001). The Choice Modeling Approach to Environmental Valuation New Horizons in Environmental Valuation,. Edward Elgar Publishing Limited, UK. |
| [8] | Bennett J. et al. (2001). The Choice Modeling Approach to Environmental Valuation New Horizons in Environmental Valuation., Edward Elgar Publishing Limited, UK. |
| [9] | Bergman, A., Hanley, N. and Wright, R. (2006) Valuing the Attributes of RenewableEnergy Investments. Energy Policy, 34, 1004-1014. |
| [10] | Birol E. et al. (2005). Using a Choice Experiment to Estimate the Non-Use Values of Wetlands: The case of Cheimaditida wetland in Greece: Environmental Economy and Policy Research Discussion Paper Series Department of Land Economy, University of Cambridge. |
| [11] | Birol et al. (2008). Choice Experiments Informing Environmental Policy: A European Perspective. Munich: Munich Personal RePEc Archive. |
| [12] | David A. et al. (2005). Appliedd choice analysis. New york: Cambridge University Press. |
| [13] | Edward B. (2013). Valuing Ecosystem Services for Coastal Wetland Protection and Restoration: Progress and Challenges:. Department of Economics and Finance, University of Wyoming, 1000 E. University Ave., Laramie, WY 82071, USA. |
| [14] | Egbenta (2010). Application of Contingent Method to Valuation of Non-Market Goods Damaged by Oil Pollution for Compensation. |
| [15] | Finlayson, C. M., Davidson, N. C., Spiers, A. G., and Stevenson, N. J. (1999). Global Wetland Inventory: Current status and Future Priorities, Marine and Fresh water Research, 50, 717–727. |
| [16] | Fitalew A. (2009). Valuation of Watershed and Fisheries of Lake Tana: An application of Choice Experiment; Unpublished Msc. Thesis, Addis Ababa University. |
| [17] | Freeman, M. A. (1993), The Measurement of Environmental and Natural Resource Values. Theory and Methods, Resource for the Future, Washington, DC. |
| [18] | G. V. T. Matthews. (2013). The Ramsar Convention on wetland its history and development. Ramsar Convention Bureau, Gland, Switzerland. |
| [19] | Gashaw et al. (2015). stock assessment of fishery target species of lake Koka. |
| [20] | Girma G. (2006). Valuing the Benefits of Improved Lake Quality: An Application of Choice Experiment to the case of Lake Awassa; Msc. Thesis, Addis Ababa University. |
| [21] | Getnet. (2012). valuation of choke mountain wetland attributes. Addis Ababa University a Masters thesis. |
| [22] | Hanley et al. (2001). Choice Modeling Approach: A superior Alternative for Environmental Valuation. Journal of Economic Surveys. |
| [23] | Hanley, N., Wright, R., Adamowicz, V. (1998). Using Choice Experiments to Value the Environment: Design Issues, Current Experience and Future Prospects; Environmental and Resource Economics, 11 (3-4): 413-428. Kluwer Academic Publishers, Printed in Netherlands. |
| [24] | International water management institute (2014). |
| [25] | John A. (2009). Environmental valuation: challenges and practices; A personal view. |
| [26] | Julian S. (2012) Comparing the Latent Class Model with the Random Parameters Logit - A Choice Experiment analysis of highly heterogeneous electricity consumers In Hyderabad, India. Department for Agricultural Economics, Humboldt-University. |
| [27] | Lambert A. (2010). Economic Valuation of Wetlands: An Important Component of Wetland Management Strategies at the River Basin Scale.. A Discussion Paper of Ramsar Convention Bureau. Gland, Switzerland. |
| [28] | Lancaster. (1966). A New Approach to Consumer Theory. Journal of Political Economy, Vol. 74 No. 2 pp. 132-157. |
| [29] | Louviere, J. J., Hensher, D. A. and Swat, J. D. (2000) Stated Choice Methods: Analysis and Application. Cambridge University Press, Cambridge, Massachusetts, USA. |
APA Style
Bulo Feyisa, Mekonnen Bersisa. (2020). Valuation of Wetland Attributes: An Application of Choice Experiment Approach: A Case Study of Lake Koka. Journal of Investment and Management, 8(5), 76-85. https://doi.org/10.11648/j.jim.20190805.11
ACS Style
Bulo Feyisa; Mekonnen Bersisa. Valuation of Wetland Attributes: An Application of Choice Experiment Approach: A Case Study of Lake Koka. J. Invest. Manag. 2020, 8(5), 76-85. doi: 10.11648/j.jim.20190805.11
AMA Style
Bulo Feyisa, Mekonnen Bersisa. Valuation of Wetland Attributes: An Application of Choice Experiment Approach: A Case Study of Lake Koka. J Invest Manag. 2020;8(5):76-85. doi: 10.11648/j.jim.20190805.11
Share This Article
Twitter
Linked In
Facebook
Copy
Download@article{10.11648/j.jim.20190805.11,
author = {Bulo Feyisa and Mekonnen Bersisa},
title = {Valuation of Wetland Attributes: An Application of Choice Experiment Approach: A Case Study of Lake Koka},
journal = {Journal of Investment and Management},
volume = {8},
number = {5},
pages = {76-85},
doi = {10.11648/j.jim.20190805.11},
url = {https://doi.org/10.11648/j.jim.20190805.11},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20190805.11},
abstract = {Ethiopia has many lakes, the greater part of which is found in the Rift-valley, that are central for the development of economy of the country. One of these Lakes is Lake Koka, which is found inside the Ethiopian Rift Valley, and is an artificial lake built in 1960 to generate hydroelectric power. In spite of different advantages provided by Lake Koka, absence of powerful administration, uncontrolled irrigation, intensive agriculture and different human made activities has prompted to the degradation of the wetland. Human made activities such as, using wetland as waste disposal, over grazing, etc. aggravate the problems of the lake. To assign monetary values for the multi-functions and services offered by this Lake wetland ecosystem, this study applied choice experiment valuation method by identifying five attributes i.e. fish stock, biodiversity, water quality, availability of water and monetary payment. Multinomial logit, random parameter logit and latent class models were used to analyze the data collected from a sample of 200 respondents. The marginal willingness to pay for the improvement of water availability attribute is the highest which is birr 55 and it is significant at 1% level. Respondent’s willingness to pay for an increase in the level of water quality of Lake Koka and biodiversity from current situation of the lake, other things being constant, is birr 42 and birr 12 annually respectively. Respondents gave more value to the availability of water than biodiversity and water quality attributes.},
year = {2020}
}
TY - JOUR T1 - Valuation of Wetland Attributes: An Application of Choice Experiment Approach: A Case Study of Lake Koka AU - Bulo Feyisa AU - Mekonnen Bersisa Y1 - 2020/01/04 PY - 2020 N1 - https://doi.org/10.11648/j.jim.20190805.11 DO - 10.11648/j.jim.20190805.11 T2 - Journal of Investment and Management JF - Journal of Investment and Management JO - Journal of Investment and Management SP - 76 EP - 85 PB - Science Publishing Group SN - 2328-7721 UR - https://doi.org/10.11648/j.jim.20190805.11 AB - Ethiopia has many lakes, the greater part of which is found in the Rift-valley, that are central for the development of economy of the country. One of these Lakes is Lake Koka, which is found inside the Ethiopian Rift Valley, and is an artificial lake built in 1960 to generate hydroelectric power. In spite of different advantages provided by Lake Koka, absence of powerful administration, uncontrolled irrigation, intensive agriculture and different human made activities has prompted to the degradation of the wetland. Human made activities such as, using wetland as waste disposal, over grazing, etc. aggravate the problems of the lake. To assign monetary values for the multi-functions and services offered by this Lake wetland ecosystem, this study applied choice experiment valuation method by identifying five attributes i.e. fish stock, biodiversity, water quality, availability of water and monetary payment. Multinomial logit, random parameter logit and latent class models were used to analyze the data collected from a sample of 200 respondents. The marginal willingness to pay for the improvement of water availability attribute is the highest which is birr 55 and it is significant at 1% level. Respondent’s willingness to pay for an increase in the level of water quality of Lake Koka and biodiversity from current situation of the lake, other things being constant, is birr 42 and birr 12 annually respectively. Respondents gave more value to the availability of water than biodiversity and water quality attributes. VL - 8 IS - 5 ER -
Email: