Pricing ecological services: Willingness to pay for drought mitigation from watershed protection in eastern Indonesia

Subhrendu K. Pattanayak is the Oak Professor of Environmental and Energy Policy at Duke University. He studies the causes and consequences of human behaviors related to the natural environment to help design and evaluate policy interventions in low-income tropical countries. His research is in three domains at the intersection of environment, development, health and energy: forest ecosystem services, environmental health (diarrhea, malaria, respiratory infections) and household energy transitions. He has focused on design of institutions and policies that are motivated by enormous inequities and a range of efficiency concerns (externalities, public goods and imperfect information and competition).

Dr. Pattanayak approaches these problems through systematic reviews of the literature (meta-analyses) and statistical modeling with high-resolution objective data collected in the field. He then uses those data to test hypotheses salient to policy manipulation, developed both from economic frameworks, stakeholder discussions and direct observations in the field. He employs empirical methods that exploit quasi-experimental variation (or experiments where feasible and appropriate), captured through household, community and institutional surveys. He typically matches these survey data with meso-scale secondary statistics and estimates econometric models to generate policy parameters. Dr. Pattanayak has collaborated closely with multi-lateral agencies, NGOs, governments, and local academics in Brazil, Costa Rica, Ethiopia, India, Indonesia, Mexico, Nepal, Sri Lanka and the U.S.

Before coming to Duke in 1988, he was on the faculty at Virginia Polytechnic Institute and State University. He has held visiting positions at IUCN--The World Conservation Union, the Economic Growth Center at Yale University, and the Indonesian Ministry of Forestry. He has served as a consultant to the World Bank, World Health Organization and other international organizations. He was named Duke University's Scholar Teacher of the Year in 2004.

Kramer's research is focused on the economics of ecosystem services and on global environmental health. He is currently conducting a study on the effects of human land use decisions on biodiversity, infectious disease transmission and human health in rural Madagascar. Recent research projects have used decision analysis and implementation science to evaluate the health, social and environmental impacts of alternative malaria control strategies in East Africa. He has also conducted research on health systems strengthening, economic valuation of lives saved from air pollution reduction. and the role of ecosystems services in protecting human health.