Value of Protecting the Black-faced Spoonbill in Macao
Attributes
Medium: Animals, Plants and/or Others
Country: Macao SAR (China)
Analytical Framework(s): Contingent Valuation
Unit(s): Mean WTP
Study Date: 2005
Publication Date: 2007
Major Result(s)
| Category | Resource/Environmental Good | MOP, per household per month (2005) |
|---|---|---|
| Voluntary payment | The black-faced spoonbill1 | 18.05 |
| Mandatory payment | The black-faced spoonbill | 38.56 |
Study Note: The good being valued in this study is an endangered species and the public is not very familiar with it. In the context of a contingent valuation survey, the in-person interview would appear to face some potentially serious limitations. A relatively new survey mode called drop-off was used to give the respondents more time to obtain information on the good to be valued and to think seriously about their valuations. This method was expected to increase the reliability of the estimation results. The study results show that this survey method can be potentially employed in the context of a developing country.
Study Details
Summary: Macao is an important destination for black-faced spoonbills' over-wintering. However, the rapid economic growth and tourism industry development over the past decades have resulted in conflicts between biodiversity conservation and economic development. This paper examines the public's willingness to pay (WTP) for black-faced spoonbill conservation in Macao using the contingent valuation method (CVM). A secondary objective is to investigate the potential effect of payment vehicles under a mandatory surcharge and a voluntary payment using a split sample. Estimated household's WTP for black-faced spoonbill conservation in Macao ranges from MOP18.03 (US$2.25) to MOP 38.56 (US$4.82) per household per month in five years depending on payment schemes. The results indicate that the conservation value is strongly associated to the population's ability to pay, increasing with income levels. We find that, when confronted with a mandatory payment mechanism, respondents state a higher WTP than when a voluntary payment mechanism is used. We use the benefit estimates in combination with the cost estimates to consider the efficiency of the conservation program. The results show that the program has estimated benefits greater than costs. Our study provides insights of Macao local household preferences for black-faced spoonbill conservation and will help policy makers in resolving the conflict between development and conservation.
Site Characteristics: The Macao Special Administrative Region, which is a part of China, is situated on the west side of the Pearl River Delta located at the southeast coast of China within latitude 22°06'40"-22°13'01" North and longitude 113°34'47"-113°35'20" East. Macao has a warm and humid climate with annual average temperature of 23.2°C, daily average humidity at 78%, and annual average rainfall of 1490 mm. The total area of Macao is about 27.3 km2, comprising a Macao peninsula and two islands of Taipa and Coloane. According to the latest census, Macao has a population of 448,495 in 2003, which is a 23.3% growth from the 363,784 population size in 1991. Macao is one of the most densely populated regions in the world with an average population density of 16,m428 inhabitants per km2.
Comments: Using both non-parametric and parametric analysis, we find a statistically significant difference in WTP responses in two different payment schemes. When confronted with a mandatory payment mechanism, respondents state a higher WTP than when a voluntary payment mechanism is used. An inference from this finding is that the payment vehicle is important in eliciting WTP. For Macao people, the mandatory payment method is preferred to the voluntary payment. One explanation for this observation is people care about fairness in terms of providing a public good. They thought other households should also pay the same specified amount as they would.