Determinants of Household Income and Willingness to Pay for Indigenous Plants in North West Province, South Africa: A Two-Stage Heckman Approach

Abstract

Using a cross-sectional dataset, this study examines the factors influencing the income and willingness to pay for indigenous plants by rural households in the North West Province of South Africa. The method of data analysis was based on a two-stage Heckman model. Based on empirical data, the majority (93%) of the households are willing to pay for the indigenous plants. Furthermore, factors such as the age of the household’s head, marital status, size of households, financial returns and economic benefit of indigenous plants significantly influenced income and willingness to pay for indigenous plants by the households. Thus, indigenous plants have the potential to penetrate local and international markets and can be used to improve the economies, livelihood, and food security status of rural households in South Africa. Indigenous plant cultivation can increase agro-food system species diversity while conserving plant species indigenous to this area of South Africa. Encouraging both consumption and production of indigenous plants can also help diversify local economies and communities.