Description of valuation study conducted – DEMAND
We addressed three PGs indicated as the most relevant from the local stakeholders of the Emilia-Romagna region, namely: soil erosion, carbon sequestration and rural vitality.
The research question aimed at valuating the Willingness to Pay (WTP) of regional citizens for the aforementioned PGs provided by agriculture and forestry in the hilly and mountain areas of the Emilia-Romagna region. WTP was referred to “€/per year/per family” concerning, respectively, 1 million of tons of soil non-eroded, 1 million tons of CO2 sequestered and 1 farm exit avoided.
The applied methods were an “informed” Contingent Valuation (CV) and a Discrete Choice Experiment (DCE), both by means of a web-based questionnaire carried out by a professional agency on a representative sample of the Emilia-Romagna region population.
PG valuation results – DEMAND
CV results show a median WTP for soil erosion of €40, a median WTP for carbon sequestration of €30 and a median WTP of €36 for rural vitality. DCE results shows instead a WTP of 16.5€ for soil erosion, 92€ for carbon sequestration and 0.5€ for rural vitality on a model with 19% sensitivity and 69% specificity.
Taking into account the 11% of “protesters” and the fact that DCE model correctly estimate the WTP of around 67% of respondents, a rough overall WTP which accounts for the 1,776,613 families of the Emilia-Romagna region, could led to 29M€ per year for soil erosion measures, 163M€ per year for carbon sequestration and 835,000€ per year for rural vitality preservation.