Edited by Jeff Bennett, Xuehong Wang and Lei Zhang
Chapter 7: Non-market Values of Environmental Changes
Xuehong Wang, Jeff Bennett, Chen Xie and Zhitao Zhang INTRODUCTION The Conversion of Cropland to Forest and Grassland Program (CCFGP) provides a mix of market and non-market environmental goods and services. The non-market goods and services contribute positively to human well-being and warrant inclusion in policy analyses of the Program. While the market values can be inferred through market transactions – such as more tree crop and grass production as shown in Chapter 4 – the non-market values, especially the non-use values, must be estimated using stated preference techniques. In this chapter, a range of the non-market values derived from the CCFGP were estimated using the choice modelling (CM) technique. The CM technique allows environmental changes to be disaggregated into relevant ‘attributes’, such as landscape aesthetics and biodiversity, and marginal values for each attribute to be estimated. The value estimates of the multidimensional situational changes thus derived are useful in the future design of the CCFGP. Since the inception of the Program, better ‘targeting’ of land to be revegetated has been advocated in a number of studies (Xu, Tao and Xu 2003; Uchida, Xu and Rozelle 2005). In particular, plots that have the highest environmental marginal beneﬁts and the lowest marginal opportunity costs should be selected. With information on the values of each attribute, different environmental changes arising from speciﬁc areas of revegetated land can be evaluated. The CM technique also allows increased ﬂexibility in analysis and facilitates beneﬁt transfer (Rolfe and Bennett 2006), and offers the potential to...