Economic Valuation of Medicinal Plants Along Socio-Cultural and Agro-Ecological Gradient in Southwestern Ethiopia

Medicinal plants are vital to both traditional healthcare systems and biodiversity, yet their conservation remains undervalued in economic terms. This study employs the Contingent Valuation Method (CVM) to estimate households' willingness to pay (WTP) for the conservation of medicinal plants, utilizing both double-bound and open-ended follow-up questions. With the help of a multi-stage sampling method, 366 households in Chencha, Arba Minch Zuriya, and Gardula districts were questioned. The analysis utilized an amended probit model, revealing that 89 percent of respondents demonstrated a willingness to pay for the conservation of medicinal plants. The significant predictors of WTP were the level of education, the income of the household, the closeness of one household to the forests, and the bid amount. The average WTP of households was considered to be 3.80 USD per annum, and the total amount of it was calculated to be about 28,890 USD per year within the scope of the study area. These results show the economic and cultural significance of the medicinal plants and the importance of the local communities in terms of sustainable conservation practices. Besides, the research proves that the greater level of education and income, and the proximity of the forest, act as major aids in conservation support. This monetary estimation offers insight to the decision-makers and aids in ensuring the sustainable use of medicinal plant resources, as well as rationalizing the economic understanding of biodiversity conservation.