Economic Valuation Yuzhen Tsentralen

Description of valuation study conducted – DEMAND

The public goods adressed in the study are water quality and availability, food security and scenery and recreation

The sample for demand of public goods survey includes 87 respondents.We used a quantitative approach: we used logit models including interactions with the attributes of PGBs and the constant with socioeconomic variables to identify significant relationships between these variables and benefits of PGBs provided by the CSR. We run one model per variable (i.e. potential determinant) including interactions between it and the two attributes representing PGBs (water quality and food security) provided by the HS Mountain in the CSR BG. An example of this model for the variable representing if any individual’s relative MOTIVIPLF (How much are motivated the respondents to pay more for local foods). Also, we include interactions between the variable and the constant, which can be interpreted as relationships between the 2 PGBs.

PG valuation results – DEMAND

The results show that benefits derived from the PGBs provided by the HS under study are very heterogeneous. Abovementioned, we have found many variables significantly influencing benefits of such PGBs as a whole, while only a few variables specifically influence benefits derived from PGBs separately.

There is a moderate positive correlation between the desire to pay more for purchasing local products and the interest in purchasing this (correlation coefficient 0.448). A strong dependence is established between the priority that respondents give to food security  and water quality (0.520). For the most part, the interdependencies between the variables studied, where it is found to be statistically significant, are moderate.

Description of valuation study conducted – SUPPLY

The sample includes 30 farmers from CSR. We used a qualitative approach: we used hi squared method to determine interactions with the PGBs and the socioeconomic variables of local farmers.

PG valuation results – SUPPLY

We find farm characteristics and management (e.g. farm size, farm specialization, intensification level (measured as yields level), main production technique and producer’s environment awareness influence the costs of provision of all PGBs. Three variables (specialization, production technique and environment awareness) have significant influence on costs of provision of PGBs.

For example, the generic relationship between farm size and the costs of the bundle of PGBs provided by farmers doesn’t reveal the effect of economies of scale, so the smaller farm, the higher costs of provision. For specialization level, more specialized farm higher costs of provision of PGBs. The same interaction is found for intensification level. For production technique traditional techniques need higher costs of provision. Finally, less environment awareness lead to higher costs of provision of PGBs.