Assessing Local Communities’ Willingness to Pay for River Network Protection: A Contingent Valuation Study of Shanghai, China
Abstract
:1. Introduction
- (1) Estimate the benefit of river network protection and analyze factors affecting the WTP and the regional disparity in the WTP between urban and suburban areas.
- (2) Evaluate the public’s awareness of and attitude toward the river network and its protection.
- (3) Propose suggestions for the integrated protection of the river network based on the above results.
2. Study Area
3. Materials and Methods
3.1. Design of Questionnaire
- Would you pay money to financially assist the government for the improvement of river network (raise connectivity of river network, improve water quality, build riparian zone to make it a proper place for amusement and recreation?A. Yes (Please follow with Question 2) B. No
- Considering your household expenditures, are you willing to pay (a bid amount) money (per month) from your household income for river network improvement in the next 5 years so that the government could implement this program?A. Yes B. No
3.2. Data Collection and Valuation Approach
4. Results and Discussion
4.1. Socioeconomic Characteristics
Item | Response | Percentage (%) | Item | Response | Percentage (%) |
---|---|---|---|---|---|
Age | ≤20 | 8.85 | Household income (RMB per month) | 0–500 | 1.88 |
21–30 | 41.43 | 500–1,000 | 3.58 | ||
31–40 | 19.02 | 1,000–2,000 | 11.68 | ||
41–50 | 14.12 | 2,000–3,000 | 15.07 | ||
51–60 | 9.23 | 3,000–5,000 | 20.90 | ||
>60 | 7.34 | 5,000–8,000 | 19.59 | ||
Job | Civil Servant | 1.32 | 8,000–10,000 | 7.72 | |
Researcher | 1.13 | 10,000–15,000 | 6.59 | ||
Manager | 6.97 | 15,000–20,000 | 5.84 | ||
Medical staff | 1.51 | 20,000–30,000 | 3.20 | ||
Teacher | 1.69 | >30,000 | 3.95 | ||
Worker | 35.40 | Distance to river | 0–500 m | 51.04 | |
Private enterprise | 11.11 | 500–1,000 m | 22.22 | ||
Farmer | 2.82 | 1,000–2,000 m | 12.81 | ||
Student | 14.88 | 2,000–3,000 m | 4.14 | ||
Retired | 9.79 | 3,000–5,000 m | 3.20 | ||
Unemployed | 2.82 | >5,000 m | 6.59 | ||
Others | 10.55 | Years lived in Shanghai | <1 Year | 11.11 | |
Education level | Middle school and below | 22.03 | 1–5 Years | 27.87 | |
High school | 38.79 | 5–10 Years | 18.27 | ||
Vocational school | 17.89 | 10–20 Years | 14.69 | ||
University | 14.50 | >20 Years | 28.06 | ||
Graduated | 6.59 | Job-related influence | Yes | 36.16 | |
Household population | 1 | 1.69 | No | 63.84 | |
2 | 6.40 | District | Urban | 38.5 | |
3 | 45.95 | Suburban | 61.5 | ||
4 | 21.09 | ||||
5 | 16.01 | ||||
≥6 | 8.85 |
4.2. Value Orientation toward River Network
4.3. Recognition of Functions and Services
4.4. Awareness of Destruction and Protection
Government’s Degree of Protection | Satisfaction with Current Situation | ||||
---|---|---|---|---|---|
Options | Number | Percentage (%) | Options | Number | Percentage (%) |
Powerful | 64 | 12.05 | Satisfied | 34 | 6.40 |
Not bad | 285 | 53.67 | Tolerable | 402 | 75.71 |
Weak | 114 | 21.47 | Disappointed | 94 | 17.70 |
Not clear | 68 | 12.81 |
4.5. Estimation of WTP and the Total Benefit
Bid Amount | 2 | 5 | 10 | 20 | 50 | 100 | 200 | 500 | Sum |
---|---|---|---|---|---|---|---|---|---|
Sample size | 73 | 70 | 72 | 71 | 70 | 68 | 59 | 48 | 531 |
WTP > 0 | 49 | 63 | 49 | 53 | 46 | 48 | 35 | 30 | 373 |
WTP = 0 | 24 | 7 | 23 | 18 | 24 | 20 | 24 | 18 | 158 |
Y(WTP > 0)% | 95.92 | 96.83 | 87.76 | 84.91 | 71.74 | 54.17 | 22.86 | 16.67 | |
N(WTP = 0)% | 4.08 | 3.17 | 12.24 | 15.09 | 28.26 | 45.83 | 77.14 | 83.33 |
4.6. Factors Influencing WTP
B | S.E. | Wals | df | Significance | Exp (B) | |
---|---|---|---|---|---|---|
AGE | 0.024 | 0.115 | 0.044 | 1 | 0.834 | 1.024 |
JOB | 0.019 | 0.054 | 0.116 | 1 | 0.734 | 1.019 |
EDU (educational level) | −0.007 | 0.138 | 0.002 | 1 | 0.960 | 0.993 |
PEO (household population) | −0.046 | 0.132 | 0.120 | 1 | 0.729 | 0.955 |
INC (household income) | 0.108 | 0.071 | 2.326 | 1 | 0.127 | 1.114 |
DIS (distance from river) | −0.241 | 0.091 | 7.101 | 1 | 0.008 | 0.786 |
LYS (years in Shanghai) | −0.234 | 0.114 | 4.208 | 1 | 0.040 | 0.792 |
PRO (environmentally related job) | −0.038 | 0.297 | 0.017 | 1 | 0.898 | 0.963 |
A (payment amount) | −0.012 | 0.002 | 48.345 | 1 | 0.000 | 0.988 |
Constant | 2.649 | 1.063 | 6.215 | 1 | 0.013 | 14.140 |
2LogLikelihood | 325.502 | |||||
Cox & Snell R Squared | 0.271 |
4.7. Regional Difference in WTP
Area | B | S.E. | Wals | df | Significance | Exp (B) | |
---|---|---|---|---|---|---|---|
Urban area | A (payment amount) | −0.010 | 0.002 | 18.864 | 1 | 0.000 | 0.990 |
Constant | −0.936 | 1.770 | 0.279 | 1 | 0.597 | 0.392 | |
2LogLikelihood | 127.678 | ||||||
Cox & Snell R Squared | 0.235 | ||||||
Suburban | A(payment amount) | −0.007 | 0.001 | 36.247 | 1 | 0.000 | 0.993 |
Constant | 4.372 | 1.222 | 12.802 | 1 | 0.000 | 79.223 | |
2LogLikelihood | 269.420 | ||||||
Cox & Snell R Squared | 0.213 |
4. Conclusions and Recommendations
- (1) The river network was valued by most local residents in Shanghai, and its eco-environmental value was the most important of the values examined. Water quality and aquatic life were the aspects of the river network that were ranked most highly, and river connectivity ranked higher than river structure and quantity.
- (2) The functions of the river network as a drinking water resource and as a place used for entertainment were the most frequently recognized services furnished by the river network. In the area of entertainment, indirect uses were more frequently cited than direct uses.
- (3) The destruction of the river network and the degradation of its functions have attracted wide public attention. Decreases in water quality and channel blockage were the most frequently cited forms of deterioration. Material elements of culture, such as bridges, architectures and historical sites, were the focal points in the area of cultural loss. Few residents were satisfied with the current situation and the protection given by the government. More powerful and effective actions for river network protection are needed.
- (4) The mean WTP in the study area was 226.44 RMB per household per month, or 22.43 billion RMB per year within the boundaries of Shanghai. The number of years lived in Shanghai, the distance from the home to the nearest river and the amount of the bid were factors that significantly affected the WTP. The analysis also found a significant difference in the WTP between the urban and suburban areas. This difference was not consistent with the difference in the income levels between these areas.
- (1) The water quality in Shanghai has shown improvement after the development of pollution control projects over the past few decades. In the coming years, the government should begin to shift the target of protection from the simple improvement of water quality to the integrated restoration of the entire river network, including its structure and connectivity. Such ideas should be promoted to convince the public. Because the indirect entertainment services along the riverside are most important, measures should be taken to provide ecological passageways, platforms, and waterfront green space.
- (2) Because of the unique eco-environmental and cultural characteristics of Shanghai, the protection of the river network should be combined with the protection of culture and the development of tourism. The local government should gradually restore the historical features related to the river network.
- (3) The results of the study show that a large proportion of the local residents are willing to pay for river network improvement and protection, thus, economic policy is identified as a flexible instrument for river network management. Efforts to assess and evaluate the status of the river network need to be initiated, and market-based policy should be proposed based on a larger sample collected in selected districts. Ecological compensation or a reward mechanism based on the CVM results might be introduced to support protection.
Acknowledgments
Conflict of Interest
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Shang, Z.; Che, Y.; Yang, K.; Jiang, Y. Assessing Local Communities’ Willingness to Pay for River Network Protection: A Contingent Valuation Study of Shanghai, China. Int. J. Environ. Res. Public Health 2012, 9, 3866-3882. https://doi.org/10.3390/ijerph9113866
Shang Z, Che Y, Yang K, Jiang Y. Assessing Local Communities’ Willingness to Pay for River Network Protection: A Contingent Valuation Study of Shanghai, China. International Journal of Environmental Research and Public Health. 2012; 9(11):3866-3882. https://doi.org/10.3390/ijerph9113866
Chicago/Turabian StyleShang, Zhaoyi, Yue Che, Kai Yang, and Yu Jiang. 2012. "Assessing Local Communities’ Willingness to Pay for River Network Protection: A Contingent Valuation Study of Shanghai, China" International Journal of Environmental Research and Public Health 9, no. 11: 3866-3882. https://doi.org/10.3390/ijerph9113866
APA StyleShang, Z., Che, Y., Yang, K., & Jiang, Y. (2012). Assessing Local Communities’ Willingness to Pay for River Network Protection: A Contingent Valuation Study of Shanghai, China. International Journal of Environmental Research and Public Health, 9(11), 3866-3882. https://doi.org/10.3390/ijerph9113866