Determinants of Willingness to Pay and Willingness to Accept in Environmental Service Payment Programs: Evidence from Cao Bang Province, Vietnam

This study examines the willingness to pay (WTP) of urban and peri-urban households and the willingness to accept (WTA) of forest owners for forest environmental services (FES) in Cao Bang Province, Vietnam — an area implementing a pilot Payment for Ecosystem Services (PES) program since 2012. Using the Contingent Valuation Method (CVM) with payment card interviews, logistic and linear regressions were employed to identify socio-economic and perception-based determinants of payment decisions and bid levels. Results indicate that the average household WTP is 399,000 VND per year, significantly influenced by education, income, household size, and PES awareness. In contrast, forest owners reported an average WTA of 552,680 VND per hectare per year, shaped by income, land area, and distance to forest edges. This research is novel in jointly analyzing household WTP and forest owner WTA within a single PES scheme, offering a balanced perspective from both demand and supply sides. By focusing on Cao Bang — a PES locality in Vietnam not previously studied — the paper advances ecosystem service valuation in developing-country contexts and provides practical guidance for designing socially inclusive and economically viable PES policies.