On the budget for national environmental objectives and willingness to pay for protection of forest land

Abstract

A number of national environmental objectives have been decided on by the Swedish parliament. In this paper, a measure of willingness to pay for attaining these objectives is outlined in terms of an “environmental budget”, which can be disaggregated. Based on a nationwide contingent valuation survey, the average environmental budget was estimated and then disaggregated on specific “green” indicators. This paper focuses especially on protection of forest land for biodiversity purposes. Multiple bounded dichotomous choice questions were employed in the survey, allowing respondents to express uncertainty in their valuations. The effect of different question formats and valuation scenarios on the disaggregation of the environmental budget was investigated. Consideration of uncertainty had a significant impact on willingness to pay estimates. Willingness to pay varied between different levels of forest land protection when uncertainty was explicitly introduced. When valuation estimates were aggregated on the national level, the value of forest land protection exceeded the costs by a small margin.