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we will now discuss as a factor which might become very difficult for TFCG andMJUMITA to deal with.8.4.7 Opportunity CostsThe main idea, something which often PFM were not able to deliver on, is to throughthese incentive mechanisms cover the loss in profitability the villagers will experienceas a result of stopping deforestation and forest degradation, also known as opportunitycost. As explained by Angelsen (2008):“Opportunity costs are the foregone economic benefits from the best alternative (nonforest)land uses, e.g., the minimum amount a landowner must be paid to be willing tostop deforestation and forest degradation/DD (compensation payment) (Angelsen2008, p.20.).The most tangible benefits and incentives the villagers will receive through TFCG fornow will be in the form of activities as mentioned above. As stated, the leakagepackage of activities provided to each village will depend largely on what thecommunity itself will prefer. Within a visioning exercise, TFCG has decided to placeparticular emphasis on the views of the poorer people and women in the community(Local resource person 2010).The opportunity cost of charcoal production in Kilosa is high, and particularly inthose areas close to Kilosa town where the access to forests and to the main market inKilosa makes charcoal making relatively easy and very profitable. The increasingcharcoal prices coupled with an ever increasing demand for it from urban areas makesit even more so. This is not to say that everyone does indeed produce charcoal as it isa very physically exhausting activity and without a proper licence there is a chancethat one can be caught by the district foresters and heavily penalised.And some would probably prefer to do other activities such as agriculture but feelthey don‟t have any choice. In addition, we found it quite surprising, althoughpositive, that those which generally were more involved in charcoal production, e.g.the least poor and those from Masugu, were overall quite positive to stop producingcharcoal.270