Job Market Paper
Public Preference for Ecosystem Services in the Danda River Basin, Nepal: A Choice Experiment Study
Abstract: Freshwater systems have historically been the linchpin of urban centers; however, they are also considered to be the most endangered ecosystems in the world. This paper develops a choice experiment method to assess the potential for a sustainable management of a freshwater system, the Danda River, in Nepal. We use a primary survey data from 637 households (effective response rate of 90%), and the empirical analysis is conducted using the Generalized Multinomial Logit model. The results indicate significant and substantial demand for the river ecosystem services. Our analysis incorporates respondent preference uncertainty, and we also explore the presence of spatial heterogeneity using the hot spot analysis. We find the inclusion of preference uncertainty increased the precision of the marginal willingness to pay estimates, while the hot spot analysis indicates that heterogeneity in preferences for the ecosystem services surfaces from an urban center. We also observe that the public prefers community-based management of the Danda River, which highlights the need for policymakers to decentralize their management to the local communities so as to enhance interest in conservation of common pool resources like the Danda River.
Public Preference for Ecosystem Services in the Danda River Basin, Nepal: A Choice Experiment Study
Abstract: Freshwater systems have historically been the linchpin of urban centers; however, they are also considered to be the most endangered ecosystems in the world. This paper develops a choice experiment method to assess the potential for a sustainable management of a freshwater system, the Danda River, in Nepal. We use a primary survey data from 637 households (effective response rate of 90%), and the empirical analysis is conducted using the Generalized Multinomial Logit model. The results indicate significant and substantial demand for the river ecosystem services. Our analysis incorporates respondent preference uncertainty, and we also explore the presence of spatial heterogeneity using the hot spot analysis. We find the inclusion of preference uncertainty increased the precision of the marginal willingness to pay estimates, while the hot spot analysis indicates that heterogeneity in preferences for the ecosystem services surfaces from an urban center. We also observe that the public prefers community-based management of the Danda River, which highlights the need for policymakers to decentralize their management to the local communities so as to enhance interest in conservation of common pool resources like the Danda River.
Published Works:
(Journal of Development and Agricultural Economics, May 2017)
Abstract: This study presents an application of the Ricardian approach to explore the impact of climate change on farmland values in Nepal. The Ricardian approach is estimated using a panel fixed effects model, and the outcome is compared against two separate models that account for spatial correlation: a spatial autoregressive (SAR) model; and a spatial error model (SEM). The findings suggest that Nepalese farmlands are sensitive to climate change, and this result was consistent in both the non-spatial and the spatial frameworks. The inclusion of the spatial effects, however, revealed the presence of positive spatial autocorrelation and produced conservative estimates of climate change impacts. The net effect of annual increases in average temperature was negative; while the net effect of higher annual average precipitation was a positive outcome on farmland values. In particular, we found that the marginal effect of every degree increase in average annual temperature was Rs.180 /hectare ($1.80) reduction in farmland values. Likewise, for rainfall, it was found that 1 mm increase in average annual rainfall would positively affect farmland value by Rs.225/hectare ($2.25). Finally, the study findings suggested that extreme weather events could also impact the agricultural productivity and the farmland values in Nepal.
2. Willingness to Pay for mitigating human-elephant conflict by residents of Nepal
(Journal of Nature Conservation, April 2017)
Abstract: Human-elephant Conflict (HEC) is a significant problem in Nepal, with approximately two-thirds of households being impacted by elephants (Elephas maximus), particularly during the winter. In addition to elephant casualties, more than 10% of the households surveyed have had human casualties (injury or death) during the past 5 years. This study evaluates the economic viability of elephant conservation in Nepal within the context of current and proposed HEC mitigation scenarios. Face-to-face interviews were carried out using a structured questionnaire to elicit the residents’ willingness to pay (WTP) for elephant conservation and HEC mitigation programs using seemingly unrelated regression (SUR). Residents’ WTP was found to be positively related to income and education, and negatively related to damage-related programs. Local stakeholders were willing to pay about 42% more to programs that were economically transparent and improved upon existing management. Residents’ WTP were also greater if they have had previous HEC-related injuries or deaths.
(Journal of Development and Agricultural Economics, May 2017)
Abstract: This study presents an application of the Ricardian approach to explore the impact of climate change on farmland values in Nepal. The Ricardian approach is estimated using a panel fixed effects model, and the outcome is compared against two separate models that account for spatial correlation: a spatial autoregressive (SAR) model; and a spatial error model (SEM). The findings suggest that Nepalese farmlands are sensitive to climate change, and this result was consistent in both the non-spatial and the spatial frameworks. The inclusion of the spatial effects, however, revealed the presence of positive spatial autocorrelation and produced conservative estimates of climate change impacts. The net effect of annual increases in average temperature was negative; while the net effect of higher annual average precipitation was a positive outcome on farmland values. In particular, we found that the marginal effect of every degree increase in average annual temperature was Rs.180 /hectare ($1.80) reduction in farmland values. Likewise, for rainfall, it was found that 1 mm increase in average annual rainfall would positively affect farmland value by Rs.225/hectare ($2.25). Finally, the study findings suggested that extreme weather events could also impact the agricultural productivity and the farmland values in Nepal.
2. Willingness to Pay for mitigating human-elephant conflict by residents of Nepal
(Journal of Nature Conservation, April 2017)
Abstract: Human-elephant Conflict (HEC) is a significant problem in Nepal, with approximately two-thirds of households being impacted by elephants (Elephas maximus), particularly during the winter. In addition to elephant casualties, more than 10% of the households surveyed have had human casualties (injury or death) during the past 5 years. This study evaluates the economic viability of elephant conservation in Nepal within the context of current and proposed HEC mitigation scenarios. Face-to-face interviews were carried out using a structured questionnaire to elicit the residents’ willingness to pay (WTP) for elephant conservation and HEC mitigation programs using seemingly unrelated regression (SUR). Residents’ WTP was found to be positively related to income and education, and negatively related to damage-related programs. Local stakeholders were willing to pay about 42% more to programs that were economically transparent and improved upon existing management. Residents’ WTP were also greater if they have had previous HEC-related injuries or deaths.
Papers Under Review:
Unpublished Manuscripts:
- "Water Quality Avoidance Behavior: Bridging the Gap between Perception and Reality" (With Alok K. Bohara) [R&R, Water Economics & Policy]
- "Health Impacts of E.Coli Contamination in Drinking Water: An Evidence from Nepal" (With Mohammad M. Rahman & Alok K. Bohara)
Unpublished Manuscripts:
- "Statistical Comparison of Synthetic and Observed Climate Data in the Himalayas" (With Alok K. Bohara)
- "Optimal Revenue Sharing Mechanism for Hydroelectricity Power Plants"
