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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unpublished information and a week-long reconnaissance which included site visits and a fly-over of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 />

15

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