Valuing Environmental Services Using Contingent Valuation Method

This paper presents the results of two studies in Lao PDR that assessed people's willingness to pay (WTP) using the Contingent Valuation Methodology (CVM). The first study investigated the WTP of residents for the sustainable development and maintenance of urban parks in the city using Saysetha Park as the case study. In this study residents expressed that urban parks are very important to them as they are areas for relaxation and areas to conserve urban biodiversity. The WTP survey revealed that the residents' mean WTP is 10,741kip/month/household. With this amount, it was estimated that a monthly water bill surcharge of 3,000/kip/month/household may be recommended to maintain urban parks. The second study assessed the WTP for biodiversity conservation and sustainability in the Houay Nhang Protected Area. Using CVM, the WTP responses showed that the monthly contribution that would be acceptable to the people is 5,000 kip. The logit regression shows that this WTP value is influenced by bid prices, gender, and educational levels. The respondents recognized the importance of the protected area for environmental and biodiversity protection.contingent valuation, Lao PDR

Impact of Rubber Concession on Rural Livelihood in Champasack Province, Lao PDR

Investment in rubber involves considerable areas of land concession. Some state–owned concession areas that were formerly used by local people have been converted by the state for rubber production. Land concession affects the socioeconomic condition of the local community in terms of shortages of agricultural land, collection of non–timber forest products, limitations on the areas used for livestock, and biodiversity loss. The aims of this study were: to evaluate the level of job satisfaction in local community residents on their becoming laborers in a rubber company; to compare socioeconomic profit from major rubber– and non–rubber–related activities by focusing on rice production and rubber worker activities; and to estimate the factors that affect rubber worker income levels and rice farmer profits. The main methodology involved application of comparative analysis between the incomes of rubber workers and rice farmers, using socioeconomic characteristics to compare the two groups\u27 respondents through descriptive analysis and an ordinary least squares regression model. The study was based on data collected through a survey of 158 farmers carried out in the Bachiang district, Champasack province, in the southern area of the Lao People\u27s Democratic Republic in September 2010. Based on these findings, we can conclude that rice production is the traditional activity of farmers and is more beneficial to them than being a worker in rubber concession areas. Although rubber concession is being promoted by the government, these individuals are more satisfied with farming activity than being rubber workers