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International Willingness to Pay for the Protection of the Amazon Rainforest (English)

The Amazon rainforest, the world's largest tropical rainforest and an important constituent of the global biosphere, continues degrading by rapid deforestation, which is expected to continue despite policies to prevent it. Current international funding to protect the Amazon rainforest focuses on benefits from reduced carbon emissions. This paper examines an additional rationale for Amazon protection: the valuation of its biodiversity and forests as natural heritage to the international community. To measure the economic value of this benefit, the paper examines U.S. and Canadian households' willingness to pay to help finance Amazon rainforest protection. The analysis finds that mean willingness to pay to avoid forest losses projected to occur by 2050 despite current protective policies is $92 per household per year. Aggregating across all households and considering the area protected, the analysis finds that preserving the Amazon rainforest is worth $3,168 per hectare (95-percent confidence interval $1,580-$4,756), on average, to households in the United States and Canada. Considering households in other developed countries would generate yet larger estimates of aggregate value, likely comparable to the carbon benefits from rainforest protection. The results reveal high values of the Amazon rainforest to people geographically distanced from it, lending support to international efforts to reduce deforestation in the Amazon.

Details

  • Author

    Siikamaki,Juha Veikko, Krupnick,Alan Jeff, Strand,Jon, Vincent,Jeffrey R.

  • Document Date

    2019/03/11

  • Document Type

    Policy Research Working Paper

  • Report Number

    WPS8775

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Brazil,

  • Region

    Latin America & Caribbean,

  • Disclosure Date

    2019/03/11

  • Disclosure Status

    Disclosed

  • Doc Name

    International Willingness to Pay for the Protection of the Amazon Rainforest

  • Keywords

    forest loss; social cost of carbon; species loss; loss of forest; total economic value; climate change mitigation; confidence interval; high school education; reduction in forest; contingent valuation study; global carbon sink; forest cover change; area of forest; present value estimate; carbon emission result; Regulatory Impact Analysis; transportation research; cultural ecosystem services; global public good; environmental research; global carbon market; humid tropical forest; integrated assessment models; land use policy; loss of species; tropical rain forest; increase in income; species extinction; estimation result; existence value; tropical rainforest; international community; choice experiments; intrinsic value; protection program; threatened species; natural heritage; global climate; population survey; environmental benefit; protection policy; international funding; experimental design; geographic distribution; covariance matrix; survey design; positive value; household income; ethnic background; survey instrument; rainforest loss; focus group; development policy; choice model; land economics; international efforts; environmental outcome; scientific information; environmental economics; model specification; additional expense; random variable; conservative approach; resource economist; co2 emission; conservation biology; beef industry; empirical model; environmental attributes; conservation program; individual choice; public health; national survey; hiv testing; survey data; sample design; country population; econometric analysis; random utility; stochastic component; drop out; individual heterogeneity; global effects; tropical country; marginal utility; energy policies; marginal damage; household size; incentive compatibility; exchange rule; global environmental; global population; societal dependence; marginal improvement; baseline projection; executive order; reveal preference; global value; environmental science; small fraction; societal benefit; behavioral response; standard deviation; domestic population; conservation option; economic valuation; brazilian amazon; climate benefit; deforestation rate; socioeconomic variables; common sense; robustness check; negative relationship; negative correlation; model result; edge effects; biodiversity loss; positive relationship; optimal choice; educational background; gender difference; environmental conservation; resource value; linear trend; primary production; natural ecosystem; agricultural expansion; oil development; aggregate value; rainforest protection; material benefit; adequate funds; insufficient fund; sampling frame; road building; atmospheric circulation; open access; charismatic species; plant species; environmental valuation; market price; individual preference; household benefit; industrialized country; oil revenue; Industrialized countries

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Citation

Siikamaki,Juha Veikko Krupnick,Alan Jeff Strand,Jon Vincent,Jeffrey R.

International Willingness to Pay for the Protection of the Amazon Rainforest (English). Policy Research working paper,no. WPS 8775,Paper is funded by the Knowledge for Change Program (KCP) Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/334711552333303292/International-Willingness-to-Pay-for-the-Protection-of-the-Amazon-Rainforest