Temporal Reliability of Willingness to Pay for Payments for Environmental Services: Lessons from Lombok, Indonesia

Wanggi Jaung, Louis Putzel, Gary Q. Bull, Diswandi Diswandi, Witardi and Markum
Additional contact information
Wanggi Jaung: Department of Forest Resources Management, University of British Columbia, Vancouver, Canada†Center for International Forestry Research, Bogor, Indonesia
Louis Putzel: #x2020;Center for International Forestry Research, Bogor, Indonesia
Gary Q. Bull: Department of Forest Resources Management, University of British Columbia, Vancouver, Canada
Diswandi Diswandi: #x2021;Asia Research Center, Murdoch University, Perth, Australia§Faculty of Economics, University of Mataram, Mataram, Indonesia
Witardi: #xB6;TRANSFORM, Mataram, Indonesia
Markum: #x2225;Forestry Study Program, University of Mataram, Mataram, Indonesia

Water Economics and Policy (WEP), 2019, vol. 05, issue 04, 1-22

Abstract: Willingness to pay (WTP) for payments for environmental services (PES) can be temporarily reliable if contingent valuation (CV) studies are embedded in an accurate survey population, yield low measurement errors, and are based on a correct assumption of no change in sociodemographic factors affecting buyer preferences. These pre-conditions are assumed in PES schemes applying temporal reliability of WTP. This study tests these conditions in CV-PES studies from 2001, 2003, and 2011 in Lombok, Indonesia, by comparing them with a new CV-PES study in 2015. Our results show that the CV-PES studies would not meet the pre-conditions due to inclusion of non-PES buyers, potential measurement errors implied by a lack of validating information and high WTP estimate, and/or failure to test the condition of no change of socio-economic factors. Results contribute to identifying pragmatic challenges and lessons for applying temporal reliability of WTP to PES implementation.

Keywords: Temporarily reliable willingness to pay; temporal variance; buyer demand; payments for watershed services; stated-preference technique (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S2382624X18500066
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wepxxx:v:05:y:2019:i:04:n:s2382624x18500066

Ordering information: This journal article can be ordered from

DOI: 10.1142/S2382624X18500066

Access Statistics for this article

Water Economics and Policy (WEP) is currently edited by Ariel Dinar

More articles in Water Economics and Policy (WEP) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().