Time equals money? Valuing ecosystem-based adaptation in a developing country context

Liselotte C. Hagedoorn; Mark J. Koetse; Pieter J.H. Van Beukering; Luke M. Brander

doi:10.1017/S1355770X20000108

Time equals money? Valuing ecosystem-based adaptation in a developing country context

Liselotte C. Hagedoorn^*, Mark J. Koetse, Pieter J.H. Van Beukering, Luke M. Brander

^*Corresponding author for this work

Environmental Economics

Research output: Contribution to Journal › Article › Academic › peer-review

Abstract

To guide investments in ecosystem-based adaptation (EbA) in developing countries, numerous stated preference valuation studies have been implemented to assess the value of ecosystem services. These studies increasingly use time payments as an alternative to money. There is limited knowledge, however, about how to convert time to money and how the type of payment affects willingness to pay (WTP). In this study, the results of choice experiments using time and money payments are compared in the context of EbA measures in Vietnam. Six, of which five individual-specific, conversion rates are applied. WTP estimates are found to be higher for time payments. Moreover, the type of payment vehicle as well as the conversion rate has substantial effect on mean WTP and WTP distributions. We discuss implications of these results for the conversion of time to money and the use of resulting WTP estimates in cost benefit analyses in developing countries.

Original language	English
Pages (from-to)	482-508
Journal	Environment and Development Economics
Volume	25
Issue number	5
DOIs	https://doi.org/10.1017/S1355770X20000108
Publication status	Published - Oct 2020

Funding

We are grateful for funding for the ResilNam Urban and ResilNam Coastal projects from the Global Resilience Partnership through the Water Window and funding from NWO-WOTRO through the Urbanising Deltas of the World programme, project number W07.69.206. We also thank participants of the 25 Ulvön Conference and Workshop on Non-Market Valuation in Ulvön, 19–21 June 2018, for useful comments and suggestions. Thanks also to our project partners, Potsdam University and CSRD, and the students from Hu University, for the fruitful collaboration and participation in the data collection activities. Finally, we thank two anonymous reviewers for suggestions and comments. th

Funders	Funder number
NWO-WOTRO	W07.69.206

Keywords

discrete choice experiments
ecosystem-based adaptation
environmental valuation
monetary payment vehicle
time payment vehicle
willingness-to-pay

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1017/S1355770X20000108

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title = "Time equals money? Valuing ecosystem-based adaptation in a developing country context",

abstract = "To guide investments in ecosystem-based adaptation (EbA) in developing countries, numerous stated preference valuation studies have been implemented to assess the value of ecosystem services. These studies increasingly use time payments as an alternative to money. There is limited knowledge, however, about how to convert time to money and how the type of payment affects willingness to pay (WTP). In this study, the results of choice experiments using time and money payments are compared in the context of EbA measures in Vietnam. Six, of which five individual-specific, conversion rates are applied. WTP estimates are found to be higher for time payments. Moreover, the type of payment vehicle as well as the conversion rate has substantial effect on mean WTP and WTP distributions. We discuss implications of these results for the conversion of time to money and the use of resulting WTP estimates in cost benefit analyses in developing countries.",

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AU - Hagedoorn, Liselotte C.

AU - Koetse, Mark J.

AU - Van Beukering, Pieter J.H.

AU - Brander, Luke M.

PY - 2020/10

Y1 - 2020/10

N2 - To guide investments in ecosystem-based adaptation (EbA) in developing countries, numerous stated preference valuation studies have been implemented to assess the value of ecosystem services. These studies increasingly use time payments as an alternative to money. There is limited knowledge, however, about how to convert time to money and how the type of payment affects willingness to pay (WTP). In this study, the results of choice experiments using time and money payments are compared in the context of EbA measures in Vietnam. Six, of which five individual-specific, conversion rates are applied. WTP estimates are found to be higher for time payments. Moreover, the type of payment vehicle as well as the conversion rate has substantial effect on mean WTP and WTP distributions. We discuss implications of these results for the conversion of time to money and the use of resulting WTP estimates in cost benefit analyses in developing countries.

AB - To guide investments in ecosystem-based adaptation (EbA) in developing countries, numerous stated preference valuation studies have been implemented to assess the value of ecosystem services. These studies increasingly use time payments as an alternative to money. There is limited knowledge, however, about how to convert time to money and how the type of payment affects willingness to pay (WTP). In this study, the results of choice experiments using time and money payments are compared in the context of EbA measures in Vietnam. Six, of which five individual-specific, conversion rates are applied. WTP estimates are found to be higher for time payments. Moreover, the type of payment vehicle as well as the conversion rate has substantial effect on mean WTP and WTP distributions. We discuss implications of these results for the conversion of time to money and the use of resulting WTP estimates in cost benefit analyses in developing countries.

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KW - environmental valuation

KW - monetary payment vehicle

KW - time payment vehicle

KW - willingness-to-pay

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Time equals money? Valuing ecosystem-based adaptation in a developing country context

Abstract

Funding

Keywords

UN SDGs

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