Economic Affairs
Year : 2010, Volume : 55, Issue : 1
First page : ( 84) Last page : ( 94)
Print ISSN : 0424-2513.

An Economic Analysis of Willingness To Pay (WTP) for Conserving The Biodiversity

Surendran A., Sekar C.

Post Harvest Technology Centre, Tamil Nadu Agricultural University, Coimbatore, Tamil Nadu, India.

Received:  3  February,  2010; Accepted:  27  February,  2010.

Abstract

A study was conducted in Anamalai Tiger Reserve (ATR) area in Coimbatore to study the impact of eco-tourism on the socio economic characteristics of the native inhabitants and natural resources. To determine the willingness to pay (WTP) of the respondents contingent valuation survey was administered to 60 local stake holders in ATR spot. The stakeholders were divided into two categories viz., agricultural and forest dependents and tourist dependents.Besides 60 visitors were also contacted. The economic value of biodiversity in a forest ecosystem includes direct use value and indirect use value for the ecological regulatory services it provides. Travel cost had a significant negative influence on frequency of visits while education had a positive influence. The agriculture and forest dependents, tourist dependents and tourists were willingness to pay an average amount of Rs.202, Rs.449, Rs.656/annum respectively towards internalizing eco-tourism related externalities. The option value of conserving the ATR was estimated using contingent valuation method using the bidding game technique. Education and number of animal species sighted during the current visit had positively related to WTPand were highly significant.

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