Exploring residents’ preferences for riparian restoration attributes in Lake Dambal watershed, Ethiopia: A choice experiment approach

This study aims to quantify residents’ preferences and values for riparian ecosystem service attributes, with a particular focus on the aspects of water quality, landscape aesthetics, and native fish abundance using a choice experiment. In addition, compensating surplus welfare measures are estimated to assess the welfare impact of the change in aggregate ecosystem service attribute scenarios. Using survey data collected from 209 households, the multinomial logit model and the correlated and uncorrelated random parameter logit models were applied accounting for observable and unobserved factors in the choices of individual respondents. The results show that residents are willing to pay for each and aggregate ecosystem service attribute improvements but there is a substantial heterogeneity in residents' preferences. Water quality improvement is a highly valued attribute followed by landscape aesthetics. The findings also reveal that the average willingness to pay (welfare gain) per person for moderate and maximum riparian ecosystem service improvement scenarios is estimated in the range of US$ 0.38 –8.10 (mean of 4.24) and US$ 3.44 –13.88 (mean of 8.66) respectively. Residents' positive preference and willingness to pay for riparian ecosystem services provide an incentive for the government to take the initiative to raise awareness and encourage residents' participation in riparian restoration program.