Valuing Wetland Ecosystem in Ethiopia an Empirical Evidence with Choke Mountain: Application of Choice Experiment

Ecosystem services have not market price. In Ethiopia, choke mountain wetland ecosystem has major contribution for providing water, regulating climate, and offering recreational. Valuing this natural resource helps to protect it from damage. The objective of the study is to value choke mountain wetland ecosystem by using choice experiment. To value it the attributes are biodiversity, recreational service, water availability, job opportunity, and monetary payment. Primary data was collected from 270 sample households. Both descriptive and econometrics analysis were conducted. The study found that households had good awareness about the choke mountain wetland ecosystem services. Mixed logit models were used for valuation, and all attributes are significant to affect the probability of choosing an alternative scenario. The study found that households gave higher value for biodiversity improvement than the rest and water availability is the least preferable attributes. The total WTP for the first and second alternatives was 7,133,034.216 and 7,031,211.146 respectively; it was high in the second alternative. Moreover, compensating surplus which reflect overall willingness to pay for a change from the status quo to alternative improvement scenarios were estimated. Estimated results for high improvement scenario and medium improvement scenario were ETB 2,119,457.028 and 1,955,828.606 respectively.