Estimating the local cost of conservation: a choice modeling approach for eliciting willingness to accept compensation

This study aims to quantify the economic opportunity cost of conservation to coastal communities adjacent to mangrove forests in the southern coasts of Iran (Qeshm Island). The main commercial use of the Hara forests in this area is restricted to fishing, tourist boating trips, and limited leaves cutting. We applied a choice modeling (CM) approach to measure the value of a reduction of access under hypothetical scenarios in which local users would receive monetary compensation for lessening or forgoing mangrove forest utilization. Data were collected from the rural households living in the villages adjacent to mangrove forests and then analyzed by using conditional logit model. The results showed that the existence of a willingness to accept compensation for increases in environmental risk is associated with conservation program. Local communities are willing to accept a lower compensation when the aim of protection is to lessen the Hara cutting and fishing amount relative to recreational opportunities banning. The estimated mean WTA was 235000 IRR/hsld/day. The results also showed that there is a heterogeneity in the individual’s preferences, which attributed to factors including income, age, family size, job and experience of participation in the environmental projects.