Use of Dichotomous Choice Contingent Valuation Method to Value the Putrajaya Wetland Park

Abstract

This study presents the application of dichotomous choice contingent valuation method (CVM) to value outdoor-recreational resources in Putrajaya Wetland Park. Both the logit and probit models were used to analyse the primary data obtained through personal interviews. The maximum likelihood estimates of this model showed that income and price are significant variables in determining one’s willingness to pay (WTP). This study has shown that visitors to the Putrajaya Wetland Park are willing to pay about RM3.77 for the entrance fee. The estimated revenues that could be derived if the fees were charged can also be calculated according to the WTP framework.