Valuing The Economic Benefits Of Controlling Off-site Effects Of Soil Erosion Empirical Evidence From The Eastern Highlands Of Ethiopia

This study seeks to estimate the economic benefits of controlling off-site effects of soilrnerosion and identify determinants of WTP in Kufanzik area of eastern highlands,rnEthiopia. A DB CVM survey was conducted on 134 randomly selected ruralrnhouseholds to elicit preferences for controlling the off-site effects. Using a PooledrnProbit model we have estimated the mean WTP & identified the determinant factors.rnThe result indicates that controlling the off-site effects of soil erosion offers a welfarerngain of 84.41 ETB. Income, level of education and off-site damage experience are thernsignificant factors affecting WTP. The estimated values are indicative of the WTPrnpotentials of the local community and hence designing a bottom-up approach ofrnintervention might work better. In line with this the study considers the possibilities ofrnimplementing a market based mechanism of payment for environmental servicesrn(PES) and recommend further studies on WTA.

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