This paper is an application of the contingent valuation method on community plantations in the highlands of Ethiopia. A discrete-continuous elicitation format was applied.

There have been few applications of the contingent valuation method (CVM) to forests in developing countries. When applied, the method is seldom utilized to improve the implementation of development projects.

A major strategy to combat deforestation caused by household fuel collection has been the establishment of plantations, especially in India.

A household model is specified with a number of collection possibilities and analyzed empirically using household, vegetation, and GIS data, and the potential decrease in collection from the natural forest is estimated. The results show reduced pressure on the natural, forest due to the establishment of plantations. It also questions buffer zone plantations very close to natural forests.

This paper reviews the expectations for forestry’s contribution to rural development – and for its special contributions to the most disadvantaged, to women and the landless users of the forest commons.