What is the economic value of preserving a wetland ecosystem? This study estimates the value that local residents place on protecting the Kuantu wetland in Taiwan using contingent valuation, an economic technique to assess the value of non-market resources. Wetlands provide environmental services including flood control, wildlife habitat, waste treatment, and recreational opportunities. The study explores this value using open-ended questions and double-bounded dichotomous-choice formats. Estimates vary based on question format, with estimates using a double-bounded dichotomous-choice format about three times larger than estimates using a single open-ended question. The estimated annual mean household willingness to pay to preserve the wetland using the open-ended format is approximately US$21. The value from the dichotomous-choice questions is approximately US$65. These estimates suggest that the total present-value willingness to pay to preserve the Kuantu wetland ranges from US$200 million to US$1.2 billion, discounted at 5–10%. These results demonstrate the significant economic value that local residents attribute to wetland preservation. The findings have implications for policy decisions related to wetland conservation and land management, providing a basis for cost-benefit analyses and resource allocation.
Published in Environment and Development Economics, this paper fits squarely within the journal's scope of exploring the intersection of environmental issues and economic development. The study's application of contingent valuation to assess the value of a Taiwanese wetland is directly relevant to the journal's focus on environmental valuation and policy.