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Estimating non-market environmental benefits of the Conversion of Cropland to Forest and Grassland Program: A choice modeling approach
Authors:Xuehong Wang  Chen Xie  Dan Liang
Institution:a Crawford School of Economics and Government, Australian National University, Canberra ACT 0200, Australia
b China National Forest Economics Development and Research Centre, State Forestry Administration, Hepingli, Beijing 100714, China
Abstract:The non-market values of the environmental benefits derived from the Conversion of Cropland to Forest and Grassland Program (also known as the Grain for Green Program and the Sloped Land Conversion Program) in the Loess Plateau region of North West China were estimated using choice modeling both on-site in Xi'an and Ansai and off-site in Beijing. Separate choice models were estimated for the three sites and the results compared. Significant differences were found between the implicit price estimates derived from the multinomial logit (MNL) model and the random parameter logit (RPL) model for some environmental attributes. Based on the results from the RPL models, the average willingness to pay per respondent household in Beijing was CNY882.56 (USD109.44) each year for the environmental improvements on the Loess Plateau provided by the Program, a payment level significantly higher than the comparable estimates of CNY342.56 (USD42.48) in Xi'an and CNY388.08 (USD48.12) in Ansai.
Keywords:Land use change  Choice modeling  Environmental benefits  China
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