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Understanding Inn Operators' Willingness to Pay Resource Protection Fees for Erhai Lake in China

This study delves into the willingness of inn operators to pay resource protection fees for Erhai Lake in China. Findings reveal the importance of perceived value, trust, ecological compensation cognition, and support attitude in determining willingness to pay.

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Understanding Inn Operators' Willingness to Pay Resource Protection Fees for Erhai Lake in China

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  1. Understanding inn operator's willingness to pay resource protection fees for Erhai Lake in China Mark A. Beattie, PhD Washington State University April 20, 2018

  2. Background “Sea shaped like an ear” 97 sq. mile surface area High Mountain setting Day’s drive from Beijing and Shanghai Tourism increased 124% between 1998 and 2015

  3. Policy Review Uncontrolled building with absentee owners Waste treatment system overwhelmed Erhai Lake Resource Protection Fee Levy Proposal (draft)" (RPFP) in November 2015 Fees charged to inn operators based on three grades of rooms

  4. Methodology Willingness to Pay Four dimensions: • Perceived value • Institutional trust • Ecological compensation cognition • Support attitude 307 valid questionnaires from inn keepers obtained

  5. Results • Perceived value is important to those who pay the fees. Equity is important. • Ecological compensation is best recognized by those who benefit (tourists) • Institutional trust must be demonstrated to build supportive attitudes • Without trust, the perceived value is diminished, as is the willingness to pay

  6. Implications • Policy makers need early buy-in from constituents • Trust must be built with those who are expected to pay • Payment should be made as close as possible to those who benefit directly • The power of association

  7. Further Inquiry • Replicate study in highly taxed municipalities • Research service fees and/or usage fees • Conduct “threshold” studies to pinpoint maximum willingness to pay

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