This study examines whether different biodiversity proxies – species, habitat and functionality – satisfy the scope sensitivity and plausibility criteria in willingness to pay (WTP) estimation using a choice experiment in Manu National Park, Peru. We introduce the network of species interactions as a proxy for functionality and apply latent class (LC) models, including attribute non-attendance (ANA), to account for heterogeneity in preferences. Our results indicate that functionality is the only proxy consistently meeting both validity criteria across all specifications.

Key Messages

• Kenya promotes carbon trading schemes through two pilot projects, namely Mikoko Pamoja and Vanga Blue Carbon Forest, to conserve mangrove forests.
• Participation in a carbon trading scheme offers the dual benefit of enhancing access to ecosystem services and improving household welfare.
• Non-participant households would be better off participating in the scheme than participant households.

Abstract

The prioritization of market over nonmarket values of nature is a key driver of the global biodiversity crisis. Recognizing nature’s diverse values in decisions is a fundamental lever for sustainability transformation. While economic valuation of nature has a long history, it has struggled to recognize the full suite of nature’s values, particularly the broad, relational, intrinsic, and shared values reflecting the complexity of human–nature relationships.