Contingent valuation in project planning and evaluation: the case of social forestry in Orissa, India

There have been few applications of the contingent valuation method (CVM) t o forests in developing countries. When applied, the method is seldom utili zed to improve the implementation of development projects. In this paper an application of CVM to the Orissa Social Forestry Project is reported. The results show considerable variation between villages and the analysis of th e bid function shows underlying factors to project success that can be used in project planning. The policy implications are to plant new VWL where na tural forests are inaccessible, where people have prior experience of VWL, and where fuel consumption relies heavily on market purchases. Such plantat ions are expected to give greatest benefit to families with few men and man y women. An analysis of the reliability of the study concludes that many of the observed biases originate from the enumerators. The study also recomme nds that one should be careful with the use of a discrete design in a cultu ral context such as this that is prone to yea-saying, and that strategic bi as can arise from an open ended question that follows up the start bid in a culture characterized by bargaining.