Abstract:
This paper looks at the question of whether subsistence level/indigenous people place a value on the preservation of ecosystems independent of direct impacts of environmental change, such as impacts on their health or production activities. A survey was conducting of rainforest communities who live on the banks of the Amazon River, in the vicinity of proposed oil and gas pipelines. The data was analyzed using conjoint analysis, revealing a very strong willingness to pay to avoid damage to ecosystems, even if the people were completely compensated for direct damages such as loss of access to productive resources. This results shows that environmental quality is not necessarily a luxury good, and rejects the hypothesis that people with low cash incomes have low demand for environmental quality.
JEL-codes:Q51Q56Q57 (search for similar items in EconPapers) New Economics Papers: this item is included in nep-ene and nep-env Date: 2005
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