Willingness to Accept Compensation for Railway-Induced Displacement: Insights from the Amhara Region, Ethiopia

Abstract

This research study examined the compensation requirements for households facing involuntary displacement caused by a railway development project in Ethiopia's Amhara Region. Using the contingent valuation approach, researchers estimated compensation needs, taking into account ecosystem services and household characteristics. Surveys and questionnaires were conducted with 170 affected households to gather data on compensation preferences and experiences using double-bounded dichotomous method. The collected data were analyzed using a probit model to assess the influence of compensation amount, satisfaction, marital status, religion, and education on the satisfaction levels of affected households. The findings emphasized the significant impact of these factors and the necessity of fair compensation policies in development projects. The study revealed that the Minimum Willingness to Accept (MWTA) for households was - 2.274 billion Ethiopian Birr, significantly surpassing the compensation amount provided. The study highlighted the importance of considering household possessions and the ecosystem in designing tailored compensation strategies. The research revealed strong opposition to displacement, underscoring the need for customized compensation schemes that address preferences and non-monetary aspects. The discontent expressed by the respondents emphasized the importance of designing compensation schemes that ensure the sustenance of livelihoods without further disruptions. The study provided valuable guidance to stakeholders involved in addressing involuntary displacement, empowering them to make informed decisions and implement context-specific compensation policies. These findings contribute to the formulation of more effective and equitable compensation schemes, emphasizing comprehensive strategies for the welfare of affected households.