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2009-11-27 | Thesis MSC

Economic Valuation of Consumptive Non-Timber Forest Products Evidence from Rombo District (using Contingent Valuation Method)

Joachim, August K.. 2009. “Economic Valuation of Consumptive Non-Timber Forest Products Evidence from Rombo District (using Contingent Valuation Method)” MSc - thesis
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The dissertation describes the use of contingent valuation to estimate economic value of consumptive Non-Timber Forest Products (NTFPs), availability, types and uses among rural residents adjacent to half mile strip in Rombo district

The use of contingent valuation in estimating economic value of NTFPs offer an insight on the potential for a wider use of the methodology in evaluating environmental amenities. We used household survey data collected from a sample of five (5) villages selected out of twenty (20) villages adjacent to the half mile strip (buffer zone). The study has used both qualitative and quantitative analysis. The study found that on average a particular household was willing to pay approximately Tshs 3,540 per annum. While results from the open ended question showed that the mean willingness to pay for consumable NTFPs was Tsh 6,460 per annum. In addition to that businessmen, wage earners and farmers were willing to pay Tsh 7,080/=, Tsh 6, 977/= and Tsh 6,197/= per annum respectively though there was no statistically significant difference in the amounts they were willing to pay (p>0.1). Econometric analysis based on probit model and bootstrapping suggests that household’s income, distance to the forest, marriage, forest conservation, being a businessman and respondent being a wage earner explains households’ willingness to pay for NTFP.

 Key words: contingent valuation, Non-timber forest products, bootstrapping and willingness to pay.