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View/Open - Sokoine University of Agriculture

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3.4.1 Calculation <strong>of</strong> incomesAccording to Vedeld et al. (2004) three different income measures are applied interms <strong>of</strong> measuring resource values and environmental income: gross value, valueadded and rent. Value added equals gross value minus costs <strong>of</strong> capital consumptionand inputs. If also labour costs and normal pr<strong>of</strong>it are subtracted, it yields the rent(Vedeld, Angelsen et al. 2004).In all our income calculations, cost <strong>of</strong> own labour was not taken into account because<strong>of</strong> the difficulties associated with this, e.g. huge variations in labour prices. Costs <strong>of</strong>intermediate inputs and capital costs were also not included. All total incomesreported therefore equals the sum <strong>of</strong> cash and subsistence annual household incomes,and can thus in reality be seen as gross income.Agricultural incomes; estimates the sum <strong>of</strong> both crop income and livestock income.When calculating the crop incomes, the market price <strong>of</strong> the crops grown by thehouseholds were used and multiplied with the actual yield for each household. On top<strong>of</strong> this, livestock income was added, and was calculated in terms <strong>of</strong> total livestockmultiplied with the price <strong>of</strong> each livestock. Under livestock income, the produce werealso added in the form <strong>of</strong> milk and eggs (multiplied with market prices).Environmental income: included forest income from firewood, NTFPs, poles andtimber and charcoal, both for subsistence and cash.Non-farm incomes; this includes earnings from permanent employment at both smalland large scalesOff-farm incomes: entails the value <strong>of</strong> earnings through income from employment onother households‟ lands, and are here considered asRemittance: This is the value <strong>of</strong> income from cash transfers between households.3.4.2 Statistical testsIn all statistical test we have used a p = 0,05 when measuring level <strong>of</strong> significance.Several tests on income were carried out; including Chi-square for which wereapplied to test <strong>of</strong> independence between two variables. Through the use <strong>of</strong> inearmodels and ANOVA and linear models, Multiple regressions were done. MultipleRegressions model is used to estimate the statistic relationship between the dependent64

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