Estimating the Willingness to Pay for the Benefit of AES Using the Contingent Valuation Method

Abstract This paper presents results of a contingent valuation study based on responses from household members living in Winterswijk, The Netherlands. The respondents are asked to report their preferences on a range of willingness to pay (WTP) for agri-environmental schemes (AES) provided by farmers. Estimated WTP based on both two-step Heckman selection and Tobit model is reported. Results indicate that the willingness to pay appears to depend positively on the level of trust and membership status of household members towards environmental organizations.