Abstract:
Anbesa forest and Tullu Dimtu ecosystems are well productive ecosystems in providing ecological
resources to the by surrounding for their livelihood making. However, it is harshly being degraded
due to various socio- economic factors. These factors include but not limited to increasing population,
over grazing, farmland expansion and over extraction of construction materials. Therefore, it
necessitates investigating empirical scenario analysis that suit to guide line of appropriate
intervention technique which contribute to insuring sustainability of the ecosystem services. Payment
for ecosystem service (PES) is considered as a voluntary alternative policy instrument and has a
potential to preserve ecosystem services worldwide. The voluntary nature of PES approach raises the
issue of understanding ecological resource use scenario and socio-economic factor that relate to
ecological resource user’s choice decision behaviour to participate in such intervention. This study is
conducted in 2014 with the objectives of identifying the major component of ecological resource used,
the value farmers attach to it, and socio-economic factor affecting values respondents attached to it.
To assign monetary values to the ecological resource attribute services offered by both Anbesa forest
and Tullu Dimtu ecosystems, the study employ choice experiment valuation method. Five attributes
were identified from Tullu Dimtu ecosystem including access water service, Grass for grazing, Grass
for domestic use, Bamboo for domestic use and the monetary payment. Similarly, six attributes were
identified from Anbesa forest ecosystem including medicinal plant for domestic use, medicinal plant
for market, and Bamboo for market, Bamboo for domestic use, access to wild food and monetary
payment were identified and used. A sample of 125 from Anbesa forest and 122 from Tullu Dimtu were
randomly selected for the study. Random parameter logit model was fitted for both Anbesa forest and
Tullu Dimtu ecosystems to analyze the data. All the attributes, except cost component variable,
significantly affect the probability of choosing an alternative scenario designed to help conserve
ecosystem service and are processed positive signs. For Tullu Dimtu ecosystem, the marginal
willingness to pay under the fitted model for Grass for grazing, Bamboo for domestic use, Grass for
domestic use, access to water service at near distance and at far distance are estimated to be 48.013,
5.699, 40.853, 4969.132 and 3702.781 ETB, respectively. Following the same procedure at Anbesa
forest ecosystem, the marginal willingness to pay for Bamboo for domestic use, access to wild food,
medicinal plant for domestic use, medicinal plant for market and Bamboo for market estimated to be
6.195, 2847.353, 711.837, 743.567 and 867.117 ETB respectively. These positive signs of attached
WTP coefficient imply community’s great concern to the ecosystem service in general and for the
attributes considered in the choice scenario in particular. From this result, it can be concluded that
the respondents are positive to participate if any intervention project improving these attributes and
costs them is planned. Using this finding, therefore, it is better if proper attention be given to the
planning of conservation practices which improves all the ecological resource attributes considered in
the model to address the satisfaction (utility) of the community in the study area while keeping the
ecosystem’s health and services