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Measuring Total Economic Value of Restoring Ejina Banner's Ecosystem Services ──Application of the Non-Parametric Estimation

XU Zhong-min\+1,\ ZHANG Zhi-qiang\+1,\ SU Zhi-yong\+2,\ CHENG Guo-dong\+1 (1. State Key Laboratory of Frozen Soil Engineering,CAREERI,CAS,Lanzhou Gansu\ 730000, China; 2. State Key Laboratory of Arid Agricultural Ecology, Lanzhou University, Lanzhou G  
The contingent valuation method (CVM) is a direct interview approach that can provide an acceptable measure to estimate the economic value of preservation of natural resources. The estimates from the CVM may not be perfect now, however, the estimates from any other economic or physical science model are also imperfect. It is urgent to have an assessment of non-market benefits of restoring Ejina Banner's ecosystem. In this paper, it is taken as a case to analyze the willingness to pay of restoring ecosystem service.Obtaining accurate benefit estimate from the CVM requires describing the resources in detail. In our survey, The reason why Ejina Banner ecosystem deteriorated and the means by which ecosystem services could be restoring are depicted in another paper. There are three elements in the actual valuation portion: (1) portrayal of the resources to be valued, (2) description of the particular mechanism to be used to pay for the resources, and (3) the question format used to elicit the respondent's money amount of willingness to pay. Concerning over the influence of institutional and culture setting, payment card is adopted in the investigation. A non-parametric model is employed to estimate the welfare of restoring Ejina ecosystem. Result from 700 in-person interviews indicates that a household would pay$43.39 per year on the average, $47.59 for the households in the main Heihe River basin, and $33.30 for the rest. The aggregate benefit to residents in the main basin is $18.39×106 annually. Taking into account the market discount rate, the aggregate benefit of restoring Ejina Banner ecosystem is $29.4 ×106 for 20 years. This estimate suggests that the general public in the Heihe River basin would be willing to pay to restoring the Ejina Banner ecosystem. Finally, some suggests are put forward on how to apply the CVM in developing country. It is believed that the CVM may be able to apply more efficiently together with benefit-cost analysis.
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