Estimating the non-market value of protected areas: the case of Senkele Swayne Hartebeest Sanctuary, South Ethiopia 

Abstract Protected Areas provide secured habitat for plants and animals. The principal objective of the study was to estimate the determinants that influence households’ decision, maximum and the mean willingness to pay local rural farm for conservation and restoration of Senkele Swayne’s hartebeest sanctuary. To achieve the objective of the study, the contingent valuation method (CVM) was using double bound dichotomous questions followed by open-ended questions. Sample data from 175 rural households were collected by applying two stage sampling procedures. The primary data was collected using structured and semi-structured questionnaire interviews, conducting, a focus group discussion and a key informant interview. Relevant secondary data was also reviewed. Both descriptive statistics and econometric methods of analysis were used. Econometric models such as bivariate probit, binary probit and Tobit models were used to estimate mean WTP, determinants of decision WTP and the intensity of WTP respectively. The WTP result shows that the average amount of money from the open-ended format was 31.71 ETB per month and the mean WTP values from double bounded dichotomous households in the senkele sanctuary can pay up to 34.59 ETB per month. Determinants such as educational level, livestock holding and total land size had a positive and significant effect on the decision of households’ WTP. While distance from sanctuary and initial bid amount had a negative influence on households' WTP decisions. Therefore, the aggregated welfare gain expected from the conservation intervention of sanctuary from the open-ended format and double bounded dichotomous format were 12,024,812.52 ETB and 13,116,943.08 ETB per year respectively. Based on welfare gains from the sanctuary intervention, results show that the aggregate value of Sanctuary from an open-ended question format (12 million ETB) was underestimated as compared to a double bounded dichotomous choice format (13.12 million ETB). This indicates that there may be the existence of free riding problems in the study area. EWCA, researchers, local people and non-governmental organizations are working together to minimize deforestation and develop a sustainable management system for Senkele sanctuary.