Estimating the economic benefits of a Wetland restoration program in New Zealand: A contingent valuation approach

Ndebele, Tom and Forgie, Vicky and Vu, Huong (2014): Estimating the economic benefits of a Wetland restoration program in New Zealand: A contingent valuation approach.

Abstract

Decades of failure to evaluate the ecosystem services provided by Pekapeka Swamp in New Zealand led to decisions that allowed prolonged degradation of the swamp, resulting in the loss of potential economic value. In 1998 a long term management plan was adopted to restore and preserve the swamp without evaluating the potential welfare benefits of the plan. This study contributes to literature by providing the first estimation of total economic value (TEV) of the restoration and preservation of Pekapeka Swamp. Using the contingent valuation method, this study shows that estimated TEV ranges from NZ$1.64 million to NZ$ 3.78 million per year and the net present value ranges between NZ$5.05 million and NZ$16.39 million. These results imply that the restoration and preservation of Pekapeka Swamp is an important investment.

• Item Type: MPRA Paper
• Language: English
• Keywords: Contingent valuation method; wetland; dichotomous choice; willingness to pay; New Zealand
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q57 - Ecological Economics: Ecosystem Services ; Biodiversity Conservation ; Bioeconomics ; Industrial Ecology

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