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

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where, T = total values <strong>of</strong> forest products marketed; Qm = quantity <strong>of</strong> good extracted; Pm= the forest gate price <strong>of</strong> good; <strong>and</strong> C = transaction costs.The mean quantities <strong>of</strong> own reported values (Qm) for extractable products from eachhousehold per period are converted to annual values. This was done by multiplyingquantities extracted (Qm) by market price <strong>of</strong> the product (Pm) less transaction costs(Equation 1 above). The total value <strong>of</strong> the product(s) was the aggregate <strong>of</strong> the totalnumber <strong>of</strong> households surveyed <strong>and</strong> extrapolated for the total population adjacent tothe forest. The method is used in direct use values <strong>of</strong> forest products such as firewood,timber, poles, water, honey etc. See Appendix 2 for details on calculation procedures.2.1.2 Replacement CostThe main service the downstream communities obtain from the forest is water. Thecommunities use water for domestic use, livestock, for irrigation, mining, <strong>and</strong> in lodges<strong>and</strong> for wildlife. The catchment area determines the water quantity <strong>and</strong> quality. Wecalculate the value <strong>of</strong> provision <strong>of</strong> water by the forest by calculating the cost <strong>of</strong> thealternative source <strong>of</strong> water if the <strong>Mara</strong> River was not to continue supplying the water.The Forests regulate water flows by absorbing <strong>and</strong> retaining rainwater during the rainseason. The stored water is released slowly that guarantee continuous flow <strong>of</strong> water inthe rivers. Without the forest, rainwater would flow as flash floods. The alternativesource <strong>of</strong> water is from boreholes. The cost <strong>of</strong> sinking a borehole is given in market rates<strong>and</strong> reflects willingness to pay by the community. According to IUCN (2002) oneborehole should sustain 300 people <strong>and</strong> 276 head <strong>of</strong> livestock (cow equivalent). The cost<strong>of</strong> sinking boreholes was assumed to be equal to the average <strong>of</strong> the cost <strong>of</strong> drillingboreholes in six districts <strong>of</strong> the Mt. Elgon region (Obiri et al., 2009) as US$ 21,185.Annual cost <strong>of</strong> a borehole = replacement cost + annual borehole maintenance costReplacement cost = cost <strong>of</strong> construction/life <strong>of</strong> a boreholeAnnual maintenance cost = cost <strong>of</strong> water point administration + annual licencefee for water extractionIUCN (2002) provides that boreholes should be depreciated over a five-yearperiod.18

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