Factors that affect the willingness to pay for kelp habitat restoration in Norway : a choice experiment approach

Abstract

This study attempts to analyze the factors that affect WTP for kelp habitat restoration in Norway using a choice experiment approach. The study is based on the survey data collected by the Arctic University of Norway. The data set cover 1013 respondents in 6 regions and 18 cities of northern Norway. The conditional logit model and mixed logit model is used for empirical estimations. Results of the study show that respondents are willing to pay €18.8 and €18.7 per year for high biodiversity attribute, €27.2 and €25 per year for medium biodiversity attribute, €14 and €12.4 per year for high fish attribute, €17.2 and €18 per year for medium fish attribute, €12.2 and €2.8 per year for 40000m2 area of kelp forest that will be restored, €18 and €17.3 per year for 20000m2 area of kelp forest that will be restored, and €26.7 and €21.4 per year for 10000m2 area of kelp forest that will be restored. These results indicate that people are willing to pay for the different environmental attributes of restoring the kelp forest habitat restoration. Results for the socioeconomics variable show that respondents who use the sea water for diving, swimming, and boating actives are willing to pay for kelp forest habitat restoration. Moreover, respondent having primary and secondary level of education for kelp forest habitat restoration. Furthermore, married and single respondents and the respondents affiliated with the environmental organizations are willing to pay for kelp habitat restoration. Students and retired respondents are willing to pay for kelp habitat restoration. Finally, respondents having annual income less than NOK 100,000 are also willing to pay for restoring medium fish abundance. Findings of this study would help the policy makers in examining the main determinants which affect the WTP of the public for kelp forests restorations and in introducing and implementing policy measures which in turn will enable them to restore kelp forests in the country.