South African Journal of Economic and Management Sciences, Vol 13, No 2 (2010)

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Application of the contingent valuation method to estimate the willingness-to-pay for restoring indigenous vegetation in Underberg, Kwazulu-Natal, South Africa

Mario Du Preez, S Tessendorf, Stephen Hosking

Abstract


This study estimates the willingness-to-pay (WTP) for a project (i.e. the Working for Water Programme) aimed at removing alien vegetation and restoring indigenous vegetation in Underberg, KwaZulu-Natal, South Africa. The WTP estimate reflects the benefit of preference for indigenous vegetation over alien vegetation. In a survey, a questionnaire was administered to 260 households in the Underberg region during September 2005. It was deduced that the mean WTP for the project was R21.12 in 2005 (R26.40 in 2008), the total WTP was R25 344.00 (R31 680.00 in 2008) and the WTP per hectare was R21.87 (R27.34 in 2008).  A valuation function to predict WTP responses was also estimated. The function showed that knowledge of the local Working for Water Programme and income were important determinants of WTP. 


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EISSN 2222-3436 (Online)