Household Willingness to Pay and Farmers' Willingness to Accept Compensation for Establishing a Recreational Woodland

Abstract

The UK Forestry Commission's recently implemented Community Woodland scheme sets out to provide new recreational woodland facilities near to towns and cities where such resources are in short supply. This study examines household willingness to pay (WTP) for such a proposed woodland by means of the contingent valuation (CV) method. A stratified sample of 325 households in Wantage, Oxfordshire, was interviewed and asked to state both their annual and per-visit WTP. Analysis of a number of recognized potential biases suggested that the results obtained must be treated with caution although we argue that the CV provides a useful ballpark indication of preferences. A simultaneous CV survey of farmers' willingness to accept compensation for converting agricultural land into woodland proved to be far more robust, despite a small sample size. We conclude that farmers are more familiar with the concept of assessing potential compensation than are households with estimating hypothetical payments for increased provision of public goods.