Tropical Forest Protection: An Empirical Analysis of the Costs Borne by Local People

Contingent valuation is used to value tropical forest resources for a rural population in Africa. Welfare losses from land-use restrictions associated with a newly established national park in Madagascar are estimated with a willingness-to-accept format. Because of a limited local cash economy, the contingent valuation question is denominated in baskets of rice. The analysis indicates that contingent valuation can be successfully applied to rural households within the developing country context. The econometric analysis undertaken reveals a systematic association between various socioeconomic variables of interest and the expressed willingness-to-accept compensation for foregone land use.