TITLE:
Economic Valuation of Forest Conserved by Local Community for Carbon Sequestration: The Case of Humbo Community Assisted Natural Regeneration Afforestation/Reforestation (A/R) Carbon Sequestration Project; SNNPRS, Ethiopia
AUTHORS:
Elmi Nure Negewo, Zeleke Ewnetu, Yemiru Tesfaye
KEYWORDS:
Contingent Valuation Method, Sustainable Forest Management, Carbon Sequestration
JOURNAL NAME:
Low Carbon Economy,
Vol.7 No.2,
June
27,
2016
ABSTRACT: The study was carried
out to determine the economic value of forest conserved by local community for
carbon sequestration in the Humbo District, Ethiopia. The contingent valuation
method (CVM) using the double bounded bivariate probit econometric method was
employed to estimate WTP for sustainable forest management. Household survey was
randomly conducted in 218 respondents
purposively selected from three forest development cooperatives. The bivariate
probit model was run to estimate mean WTP and to identify the
determinant factors for farmers’ WTP for forest
conservation. Thus, the mean WTP with covariates was estimated to be 104.38 Ethiopian Birr (ETB) and 55.73 ETB1 per year
for the initial bid and for the follow-up bid amount, respectively. The result also indicated that
respondents’ level of education, marital status, years
of membership in the cooperatives, second bid amount, distance of
residence from forest of interest, and net
family income were significantly related to WTP for forest conservation. The
study showed that even the poor households were willing to pay the
average values in terms of cash contribution to maintain the forest management
responsibility following the withdrawal of the NGO. In conclusion, whereas CVM can be applied to determine WTP
for forest conservation, local people recognize and give value to the
environmental services of the forest and are willing to maintain those
benefits. The study also indicates the potential for sustainable forest management
through community-based approach.