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Contingent valuation with modeling logit and multivariate analyses: a case study of the willingness of coffee planters linked to the PRO-COFFEE of Viçosa - MG to accept compensation

The object of this study was to identify which method, either LOGIT or multivariate analyses, was the most efficient to estimate the coffee planters' Willingness to Accept a Compensation, when there was a possibility of occurrence of marginal utility. For such, a questionnaire was formulated, with 33 questions involving information on coffee planters' socio - economic characteristics, the use of the methodology of contingent valuation (MCV), and the payment of the "offer game" that reveled the willingness to accept a compensation (WAC), by exchanging a hectare of coffee by a hectare of forest. As expected, because of the marginal utility's bias, the LOGIT method was unable to produce consistent results. However, when the WAC was estimated by multivariate analyses, the results showed that if the government is willing to increase the provision of forest to 70 hectares, it should pay out 254,200 reais (around 116,000 dollars), dealing only with the coffee planters linked to the PRO-CAFÉ organization.

LOGIT; multivariate analyses; willingness to accept a compensation (WAC)


Sociedade de Investigações Florestais Universidade Federal de Viçosa, CEP: 36570-900 - Viçosa - Minas Gerais - Brazil, Tel: (55 31) 3612-3959 - Viçosa - MG - Brazil
E-mail: rarvore@sif.org.br