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Working Paper

Preferences for REDD+ Contract Attributes in Low-Income Countries : A Choice Experiment in Ethiopia

ECOSYSTEM SERVICES FOREST DEGRADATION ENVIRONMENTAL QUALITY GREENHOUSE GAS ABATEMENT COST FOREST MANAGEMENT VALUATION REDUCING EMISSIONS NATURE GREENHOUSE GAS EMISSIONS CARBON FINANCIAL RESOURCES TIMBER ANIMALS HEALTHY FORESTS MONITORING EMISSIONS POLITICAL ECONOMY CARBON MARKETS CARBON SEQUESTRATION SERVICES BIOGAS FORESTRY PRODUCTS WELFARE ATMOSPHERE SUSTAINABLE MANAGEMENT INCENTIVES TROPICAL FOREST MODELS GAS INTERNATIONAL FORESTRY RESEARCH LIVESTOCK GRAZING GLOBAL GREENHOUSE GAS SUSTAINABLE DEVELOPMENT TREES AIR GREENHOUSE GAS WILLINGNESS TO PAY FERTILIZERS CARBON MITIGATION BIOMASS CARBON NEUTRAL RENEWABLE ENERGY SOURCES CO2 CARBON CONCENTRATIONS FOREST PRODUCTS FOREST SECTOR EFFICIENCY IMPROVEMENTS ENERGY SOURCES CAPACITY CHOICE EXPERIMENTS HETEROGENEITY PREFERENCES OPTIONS CARBON SEQUESTRATION CONVENTION ON CLIMATE CHANGE WTP POLLUTION FORESTRY FOREST ECOSYSTEM TROPICAL REGIONS WTA ENVIRONMENTAL CHANGE FOREST RESOURCES FOREST LOSS ENVIRONMENTAL ECONOMICS GAS EMISSIONS NATURAL RESOURCES FUEL SWITCHING FUELS UNEP CONTINGENT VALUATION ABATEMENT COST EFFICIENCY GREENHOUSE GASES CARBON EMISSIONS RESOURCES FOREST CARBON FUEL WOOD GREENHOUSE ENVIRONMENTAL VALUATION ECOSYSTEM MARSH LEAD GREENHOUSE GAS ABATEMENT CLIMATE CHANGE ENVIRONMENTAL GOODS FOREST COVER VALUES DEFORESTATION CLIMATE ABATEMENT FORESTS FOREST CARBON STOCKS LAND AREA CLIMATE CHANGE MITIGATION CARBON IN FORESTS LOGGING FOREST OPPORTUNITY COSTS ENVIRONMENT WEATHER PATTERNS ECONOMICS DISCOUNT RATES TRADE LAND COST OF CARBON CARBON PRICES ECOSYSTEMS SIMULATION LOCAL COMMUNITIES EMISSIONS FROM DEFORESTATION ANNUAL GREENHOUSE GAS FOREST BIOMASS CARBON STOCKS STATED PREFERENCE METHODS COMMUNITY FORESTRY CARBON MARKET LESS FOREST FIRES WILLINGNESS TO ACCEPT RATE OF DEFORESTATION CLIMATE STABILIZATION COMMUNITY VARIANCE RENEWABLE ENERGY VARIETY ENVIRONMENTAL GASES FOREST AREA GLOBAL FOREST FRAMEWORK CONVENTION ON CLIMATE CHANGE PRICES BENEFITS ILLEGAL LOGGING LAND ECONOMICS ENERGY
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World Bank, Washington, DC
Africa | Ethiopia
2015-07-16T14:41:46Z | 2015-07-16T14:41:46Z | 2015-06

This paper informs the national and international policy discussions related to the adoption of the United Nations Reducing Emissions from Deforestation and Forest Degradation Programme. Effective program instruments must carefully consider incentives, opportunity costs, and community interactions. A choice experiment survey was applied to rural Ethiopian communities to understand respondents’ preferences toward the institutional structure of the program contracts. The results show that respondents have particular preferences about how Reducing Emissions from Deforestation and Forest Degradation programs are structured with regard to the manner in which the payments are divided between the households and the communities, the restrictions on using grazing land, and the level of payments received for the program. Surprisingly, restrictions on firewood collection do not significantly impact contract choice. The paper further analyzes the structure of the preferences by using attribute interaction terms and socio-demographic interaction terms. The analysis finds significant regional variation in preferences, indicating that Reducing Emissions from Deforestation and Forest Degradation should be tailored to specific regions. Finally, the marginal willingness to pay for attributes is calculated using the traditional preference space approach, as well as the more recent willingness-to-pay approach.

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