Estimating the economic benefits of a wetland restoration programme in New Zealand: A contingent valuation approach

Decades of failure to evaluate the ecosystem services provided by the Pekapeka Swamp located in Hawke's Bay, New Zealand, led to decisions that allowed prolonged degradation of the wetland. In 1998 a long-term management plan was adopted to restore and preserve the swamp without evaluating the potential welfare benefits of the plan. This paper employs the contingent valuation method to estimate the total economic value of the restoration and preservation of Pekapeka Swamp. Data required for the analysis was generated using a survey questionnaire administered by mail to 958 households in the Hawke's Bay region in 2008. An effective response rate of 42% was achieved after a second reminder. Using a dichotomous choice format with a follow-up open-ended valuation question, this study shows that, based on the population of the Hawke's Bay region, the estimated total economic value ranges from NZ$1.64 million to NZ$3.78 million per year and the net present value ranges between NZ$5.05 million and NZ$16.39 million. These results imply that the restoration and preservation of Pekapeka Swamp is an important investment which the authorities should continue to support. These estimates may be used to justify future increases in the level of expenditure on the project. (C) 2017 Economic Society of Australia, Queensland. Published by Elsevier B.V. All rights reserved.