An Analysis of Economic Valuation through Contingent Valuation Method in Simien Mountains National Park (SMNP), Ethiopia

Abstract

Economic valuations have proved to be important tools in improving natural resources management and conservation. However there are several methods to evaluate recreational value of natural ecosystem, the Method that is used in this study is only the contingent valuation method (CVM), because this method is recommended as providing acceptable economic measures of the social benefits of recreational activities for both the used and non-used values. The study was conducted based on a random survey of 150 respondents of foreign visitors that visited the park were interviewed. The interview was conducted through a structured questionnaire over a period of eight months. The average age of respondents included in the sample is 38 years, ranging from 18 to 65 years. Perception on biological diversity loss justification in the context of the conservation of park showed that the majority of visitors agreed to the point. This concern is reflected by the respondents in WTP for the SMNP is encouraging and showed positive attitude. Value of willingness-to-pay was positively affected by the respondent’s income, age, and education.