Humboldt-Universität zu Berlin - Quarterly Journal of International Agriculture

Quarterly Journal of International Agriculture No. 3/08

Welfare loss for pastoralists due to wildlife protection areas: the case of Awash National Park, Ethiopia

Hayatudin Jemal
Ethiopian Institute of Agricultural Research, Addis Ababa, Ethiopia

Ayalneh Bogale and Konrad Hagedorn
Humboldt University of Berlin, Germany


The focus of this article is to estimate the cost that pastoralists bear as a result of the presence of Awash National Park which occupies part of their traditional pasture land, using stated preference valuation technique, specifically contingent valuation method (CVM). Survey was conducted on three rural kebeles of Awash Fentale district, which were selected purposefully, based on their vicinity to the park. A total of 130 randomly selected households were surveyed. Dichotomous choice value elicitation procedure was followed. The mean willingness to accept (WTA) was calculated to estimate the welfare loss to the community, using two procedures. First, it was estimated without calibrating the bias in the WTA response, giving a value of 86 Birr per month per household. The second value was estimated by introducing a calibration function, indicating 79 Birr per month per household. These mean values were aggregated over the pastoralist population living in the study area, assuming a 20 year project life and 10% discount rate, yielding an aggregate welfare loss of about 6.5 to 7 million Birr in present value terms.

In the empirical analysis of determinants of pastoralists’ willingness to accept compensation, results indicated that educational background, the offered bid, distance from the conservation area and training on the importance of wildlife conservation were found to affect the WTA decisions of respondents positively and significantly. On the other hand, family size, ownership of cultivated land and total income of respondents affect their WTA decision negatively and significantly.

Keywords: wildlife protection parks, welfare loss, pastoralists, contingent valuation method, Ethiopia

JEL: Q290, Q510

Vol. 47 (2008), No. 3: 217-238