Local residents’ willingness to pay and expected net loss as a result of park with people conservation strategy of the Semien Mountain National Park (SMNP) were analyzed using Heckman two stages econometric estimation procedure. The model results showed that age, degradation of farm plots, use of improved technologies, livestock ownership, cultivable land owned, perception of land degradation and land tenure security were found to be important in determining the farmers’ willingness to pay for the conservation of the national park. In addition, training on soil and water conservation, land degradation, satisfaction with conflict resolution and distance from the district’s town, use of improved technologies and income from tourist related activities were important determinants of intensity of labor contribution. On the other hand, being male household head, existence of plots with in the park boundary, age of the household head, number of oxen owned, distance from the district’s town and willingness of a household to pay for the conservation of the national park were found to relate significantly to expected net loss. The consideration of these factors would be useful to the successful and sustainable implementation of the conservation strategy.


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