Logit model application for valuating intangible benefits from the afforested areas
Purpose – The estimation of market value of intangible benefits of afforestation has always been a challenging task, and the contingent valuation method is a popular method used in environmental assessment. The NTPC set up a coal-based power plant in Korba, India and planted 1.6 million trees on 19%...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2020-04-01
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| Series: | Forestry Economics Review |
| Subjects: | |
| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/FER-04-2020-0007/full/pdf |
| _version_ | 1797791195154350080 |
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| author | Girish Chandra Avinash Jain Sanjay Kumar |
| author_facet | Girish Chandra Avinash Jain Sanjay Kumar |
| author_sort | Girish Chandra |
| collection | DOAJ |
| description | Purpose – The estimation of market value of intangible benefits of afforestation has always been a challenging task, and the contingent valuation method is a popular method used in environmental assessment. The NTPC set up a coal-based power plant in Korba, India and planted 1.6 million trees on 19% of the project area. Design/methodology/approach – The individual's mean and median willingness to pay (WTP) for four intangible benefits, namely, pollution control (PC), improvement in underground water level (IUGWL), soil conservation and remediation (SCR) in addition to total WTP from the afforestation program of NTPC were estimated using a customized procedure for logit model based upon respondent's age, education, occupation, income and bid amount asked to pay. Stratified multistage random sampling has been used to select the respondents. Findings – The procedure increases the number of respondents who are willing to pay as compared to conventional CVM. The finding of the study shows that the highest WTP was observed for PC (Rs. 462.84 per month per household) followed by SCR and IUGWL, whereas for total WTP it was Rs. 972.60. Originality/value – The proposed customized procedure and the results thereof would be useful in improving the WTP estimates for other similar studies in order to conserve the environment. |
| first_indexed | 2024-03-13T02:16:23Z |
| format | Article |
| id | doaj.art-c146d149bff94dcda41e29ae183b8a15 |
| institution | Directory Open Access Journal |
| issn | 2631-3030 |
| language | English |
| last_indexed | 2024-03-13T02:16:23Z |
| publishDate | 2020-04-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Forestry Economics Review |
| spelling | doaj.art-c146d149bff94dcda41e29ae183b8a152023-06-30T14:26:50ZengEmerald PublishingForestry Economics Review2631-30302020-04-0121334210.1108/FER-04-2020-0007Logit model application for valuating intangible benefits from the afforested areasGirish Chandra0Avinash Jain1Sanjay Kumar2Division of Forestry Statistics, Indian Council of Forestry Research and Education, Dehradun, IndiaTropical Forest Research Institute, Jabalpur, IndiaMinistry of Statistics and Program Implementation, New Delhi, IndiaPurpose – The estimation of market value of intangible benefits of afforestation has always been a challenging task, and the contingent valuation method is a popular method used in environmental assessment. The NTPC set up a coal-based power plant in Korba, India and planted 1.6 million trees on 19% of the project area. Design/methodology/approach – The individual's mean and median willingness to pay (WTP) for four intangible benefits, namely, pollution control (PC), improvement in underground water level (IUGWL), soil conservation and remediation (SCR) in addition to total WTP from the afforestation program of NTPC were estimated using a customized procedure for logit model based upon respondent's age, education, occupation, income and bid amount asked to pay. Stratified multistage random sampling has been used to select the respondents. Findings – The procedure increases the number of respondents who are willing to pay as compared to conventional CVM. The finding of the study shows that the highest WTP was observed for PC (Rs. 462.84 per month per household) followed by SCR and IUGWL, whereas for total WTP it was Rs. 972.60. Originality/value – The proposed customized procedure and the results thereof would be useful in improving the WTP estimates for other similar studies in order to conserve the environment.https://www.emerald.com/insight/content/doi/10.1108/FER-04-2020-0007/full/pdfContingent valuation methodUtility functionLogit modelWillingness to payt-Statistic |
| spellingShingle | Girish Chandra Avinash Jain Sanjay Kumar Logit model application for valuating intangible benefits from the afforested areas Forestry Economics Review Contingent valuation method Utility function Logit model Willingness to pay t-Statistic |
| title | Logit model application for valuating intangible benefits from the afforested areas |
| title_full | Logit model application for valuating intangible benefits from the afforested areas |
| title_fullStr | Logit model application for valuating intangible benefits from the afforested areas |
| title_full_unstemmed | Logit model application for valuating intangible benefits from the afforested areas |
| title_short | Logit model application for valuating intangible benefits from the afforested areas |
| title_sort | logit model application for valuating intangible benefits from the afforested areas |
| topic | Contingent valuation method Utility function Logit model Willingness to pay t-Statistic |
| url | https://www.emerald.com/insight/content/doi/10.1108/FER-04-2020-0007/full/pdf |
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