The objective of our study is to investigate households’ attitudes and willingness to pay (WTP) for the proposed second nuclear power plant in South Africa. Traditional analysis of such data has tended to ignore zero WTP values. A spike model which explicitly accounts for zero WTP is employed. We also test for effect of distance on WTP. The proximity to the nuclear plant dummy is negative and significant in the probit model, which implies that those who are closer to the plant are more likely to state a zero WTP.
Valuation of Environmental Effects
Forest ecosystem services are critical for human well-being as well as functioning and growth of economies. However, despite the growing demand for these services, they are hardly given due consideration in public policy formulation. The values attached to these services by local communities are also generally unknown in developing countries.
In Sub-Saharan Africa, climate change is set to hit the agricultural sector the most and cause untold suffering particularly for smallholder farmers. To cushion themselves against the potential welfare losses, smallholder farmers need to recognize the changes already taking place in their climate and undertake appropriate investments towards adaptation. This study investigates whether smallholder farmers in Tanzania recognize climate change and consequently adapt to it in their agricultural activities.
Through the implementation of a choice experiment valuation exercise, this study set out to identify the set of community plantation attributes that impact the welfare of potential community forestry program participants. We employed a combination of choice models to evaluate the preferences, welfare impacts and choice elasticities associated with alternative community forestry programs, allowing for different assumptions regarding heterogeneity.