DOI: 10.36347/sjebm.2015.v02i09.006

Pages: 934-943

Although, protected areas are established to conserve biodiversity, enhance eco-tourism, and contribute to the country‟s national income; the country‟s protected areas are under enormous pressure from local communities. To save these resources, appropriate conservation strategy must be put in place. The attitudes of people concerning protected area conservation affect their behaviour, and valuing this is important in involving local people in conservation planning and decision-making processes. So, this study has analyzed the economic values of biodiversity conservation for local communities, taking Semien Mountain National Park as a case, using contingent valuation method (CVM). Data from A sample of 250 households from six villages living adjacent to Semien Mountain National Park has been collected. Descriptive statistics and econometric probit model were used to analyze the data collected. Most respondents have given positive WTP response for ecological protection. Mean WTP was 24.21 Birr/household/year according to the single dichotomous choice WTP survey responses. Considering large number of people living in the area the aggregate WTP for improved SMNP ecology protection, using this mean WTP response, would be very high. This higher WTP amount may provide funding for a possible ecological management program so as to generate solutions to environmental problems associated with SMNP. The results of Probit econometric model showed that age of the respondent, education level of the respondent, income of the household, benefits generated from protected areas and awareness of the respondent influences positively respondents probability of WTP for SMNP protection while household size and initial bid value influences negatively.