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3 VALUATION FRAMEWORK AND METHODOLOGY<br />
3.1 Overall approach<br />
The study builds on considerable work that has been carried out in the study area, as well as primary<br />
data collection using surveys. The study began with an initial review of existing published and<br />
unpublished information and a week-long reconnaissance which included site visits and a fly-over of<br />
the entire delta and panhandle, meetings with stakeholders and researchers, and team discussions<br />
on the ecological-economics linkages and values pertaining to the study. This was followed by<br />
detailed methodological design. An extensive interview survey was conducted of households<br />
throughout the study area and various key informant interviews were held to inform different aspects<br />
of the study. Values were related to the biophysical characteristics and functioning of the delta as far<br />
as possible. The conceptual understanding gained was then used to estimate the implications of<br />
alternative management scenarios relating to water allocation and land-use issues. The study was<br />
also geared to evaluating the level of dependence of different types of activities on ecosystem<br />
functioning and conservation action, and to evaluate further economic potential of the area.<br />
3.2 Valuation framework<br />
3.2.1 Total Economic Value framework<br />
The economic value of the Okavango Delta was studied within the framework of Total Economic<br />
Value, which includes direct use, indirect use and non-use values. The total economic value<br />
generated by the Okavango Delta can be categorised into different types of value (Figure 3-1),<br />
providing a useful framework for analysis.<br />
TOTAL ECONOMIC VALUE<br />
USE VALUE<br />
NON-USE VALUE<br />
Direct Use Values<br />
Consumptive<br />
use value<br />
(e.g. harvesting)<br />
Non-consumptive<br />
use value<br />
(e.g. tourism)<br />
Indirect use<br />
value<br />
(ecosystem<br />
functions)<br />
Option<br />
value<br />
Existence<br />
value<br />
ECOSYSTEM GOODS & SERVICES<br />
Figure 3-1. The classification of ecosystem values that make up Total Economic Value (Turpie et al. 1999).<br />
Direct use values result from economic activity and are generated through the consumptive or nonconsumptive<br />
use of the delta’s natural resources. In the delta, direct use values are generated<br />
through crop production, livestock grazing, fishing, wild plant use and hunting. They are also<br />
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