Valuation of Environmental Assets by the Surrounding and Not Surrounding Beneficiaries

Cuadernos de Economía, Vol. 32, No. 59, pp. 67-101, 2013.

36 Pages Posted: 15 Jun 2013

See all articles by Mauricio G. Villena

Mauricio G. Villena

Adolfo Ibanez University

Ericka Ericka Y. Lafuente

Universidad Privada Abierta Latinoamericana

Date Written: May 30, 2013

Abstract

The basic research question behind this work is how the economic value of an environmental good differs considering surrounding beneficiaries (those who live near the good in question) and not surrounding beneficiaries (who inhabit the country where the good is, living in distant communities and therefore rarely enjoying the benefits provided by the environmental good). This document’s main focus is the valuation of the Algarrobos Forest of the Tiataco community (Bolivia). A comparative analysis was developed between surrounding beneficiaries (families residing in the community of Tiataco) and not surrounding beneficiaries (families residing in Cochabamba city, 35 km from Tiataco) through the Contingent Valuation Method with binary format. Measures of change regarding the welfare of both groups were estimated using parametric and nonparametric estimates.

Subsequently, these measures were statistically compared through the construction of confidence intervals (between parametric and nonparametric estimates of each population and between populations). Finally, we identified the components of total economic value that both surrounding and not surrounding beneficiaries assigned to the forest.

Note: Downloadable document is in Spanish.

Keywords: economic valuation, contingent valuation method, parametric estimates, nonparametric estimates, surrounding beneficiaries, not surrounding beneficiaries, forests, conservation, Bolivia

JEL Classification: C52, C25, C14, Q23, Q51

Suggested Citation

Villena, Mauricio G. and Ericka Y. Lafuente, Ericka, Valuation of Environmental Assets by the Surrounding and Not Surrounding Beneficiaries (May 30, 2013). Cuadernos de Economía, Vol. 32, No. 59, pp. 67-101, 2013., Available at SSRN: https://ssrn.com/abstract=2279282

Mauricio G. Villena (Contact Author)

Adolfo Ibanez University ( email )

Santiago, 794-1169
Chile

Ericka Ericka Y. Lafuente

Universidad Privada Abierta Latinoamericana ( email )

Tupac Amaru #1800 esq
Paso del Inca
Cochabamba
Bolivia

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