Using the Auction Price Method to Estimate Payment for Forest Ecosystem Services in Xin’an River Basin in China: A BDM Approach

Abstract

Accurately estimating the forest farmers’ protection costs for forest ecosystem services has become a hot issue in ecological economics. In this research, we propose a novel method of using an auction price model to evaluate the forest ecosystem services. We establish a functional relationship between forest farmers and the forestland that belongs to them based on experimental data from Xin’an River Basin in China. The results indicate that the average willingness of farmers to accept payment for forest ecosystem service protection in the low, middle, and high levels of forest quality is 17,123.10, 23,493.75, and 31,064.40 yuan/ha/year, respectively. Moreover, farmers with different individual characteristics, household characteristics, planting characteristics, policy cognition, and ecological awareness are also willing to be paid differently. This research can provide a reference for forest ecosystem protection policies and assist the sustainable forestry development.