Total Economic Value of Maasai Mau, Trans Mara and Eastern Mau ...

Economic valuation of forest goods and services is based on the notion of willingness topay that assesses individual preferences. Willingness to pay is determined bymotivation, which may vary from pure self-interest to altruism, concern for futuregenerations and environmental stewardship. Survey techniques in environmentaleconomics reveal that motivations vary significantly between individuals, but that selfinterestis only one of many motives for environmental valuation. Market prices reflectwillingness to pay. Because some consumers are willing to pay more than the priceoffered by the market, there is always a consumer surplus in market transactions.The types of economic value to be found in forests are use values and non-use values. Usevalues refer to willingness to pay to make use of forest goods and services. Such usesmay be direct, e.g. extractive uses or indirect, e.g. watershed protection or carbon storage.Use values may also contain option values, willingness to pay to conserve the option forfuture use even though no use is made of the forest now. Such options may be retainedfor one’s own use or for another generation (sometimes called a ‘bequest’ value). Nonusevalues relate to willingness to pay, which is independent of any use made of theforest now or any use in the future. The sum of individual use and non-use values is thetotal economic value.1.4 Significance of the Valuation StudyThe development challenge facing the Mara River Basin includes raising the livingstandards of the local communities while reversing degradation and depletion ofnatural resources so as to guarantee similar or better living standards for futuregenerations. The valuation process of the forest ecosystem is critical to identifying themain beneficiaries, cost bearers, the magnitude of benefits and costs, funding sources,equity and even gender issues. The distribution of benefits from forest products exhibitsan inequitable situation. Local communities bear the brunt of forest degradation whilepopulations living further away from forests, tourists, city-dwellers and industries oftenbenefit the most from forest goods and services free of charge or for very low prices.Valuation of forest resources and analysis of benefit distribution help to equitablyapportion the cost of forest conservation among the stakeholders, and provide themwith incentives to conserve forests, to limit their consumption of forest resources tosustainable levels, to halt forest clearance for other economic activities and to exploitforest resource sustainably. In spite of their central role in conservation of forestresources, government departments seldom raise adequate funds to administer theforests effectively.15