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Table 15: Example of links between value category, functions and valuation tools USE FUNCTIONS VALUATION TOOLS 34 USE VALUES NON-USE VALUES 1. Direct use value Wood products (timber, fuel) Non-wood products (food, medicine, genetic material) Educational, recreational and cultural uses Human habitat 2. Indirect use value Watershed protection Nutrient cycling Air pollution reduction Micro-climatic regulation Carbon storage 3. Option value 4. Bequest value Possible future uses of the goods and services mentioned in 1&2 (Use Values) by actual stakeholders Possible future uses of the goods and services mentioned in 1&2 (use Values) by the offspring of actual stakeholders 5. Existence value Biodiversity Culture, heritage Benefits to stakeholders of only knowing of the existence of goods or services without using them Tool to be used: Tool to be used: Tool to be used: Tool to be used: Tool to be used: Market Analysis Related Goods Approaches Travel Cost Method Contingent Valuation Method Hedonic Pricing Source: Lette & de Boo (2002) Restoration Cost Preventive Expenditure Production Function Approach Replacement Costs The foregoing tools have been successfully applied in the valuation of several tropical high forests and other ecosystems. Naidoo & Adamowicz (2005) quantified the costs and benefits of avian biodiversity in Mabira CFR through a combination of economic surveys of tourists, spatial land-use analyses, and species-area relationship. The results showed that revising entrance fees and redistributing ecotourism revenues would protect 114 of the 143 forest bird species under current market conditions. This total would increase if entrance fees Contingent Valuation Method Contingent Valuation Method Contingent Valuation Method were optimised to capture the tourists’ willingness to pay for forest visits and the chance of seeing increased numbers of bird species. Beukering & Cesar (2001) calculated the total economic value of the Leuser ecosystem in the Philippines under conservation and deforestation scenarios using extended Cost-Benefit Analysis and found that the conservation scenario far outweighed the deforestation scenario. Their study concluded that conservation of The Economic Valuation of the Proposed Degazettement of Mabira CFR | 2011
the forest ecosystem would be in the best interest of the local population, local and national governments, and the international community. Hadker et al (1997) used the Contingent Valuation Method to estimate willingness-to-pay on the part of residents of Bombay (Mumbai) for the maintenance of Borivli National Park, located within the City’s limits. The study arrived at a willingness-to-pay of 7.5 rupees per month per household, which amounted to a total present value of 1033 million rupees (or US$ 31.6 million). The authors suggested that this figure could be used to influence policy decisions, given that the Protected Area at the time ran on a budget of 17 million rupees (US$ 520 000). Menkhaus & Lober (1995) used the Travel Cost Method (TCM) to determine the value that tourists from the US placed on Costa Rican rainforests as ecotourism destinations using the Monteverde Cloud Reserve as a sampling site. Consumer surplus was estimated to be approximately US$ 1150, representing the average annual per person valuation of the ecotourism value of PAs in Costa Rica. The ecotourist value of the Monteverde Cloud Forest Reserve was obtained by multiplying the total number of visitors by the average consumer surplus. This resulted in a total annual US ecotourism value of US$ 4.5 million for the Monteverde Reserve. Janssen & Padilla (1999) used a combination of Cost- Benefit Analysis and Multi-Criteria Analysis to assess the opportunity cost of preservation and analyse tradeoffs to be made in deciding whether to preserve or convert a mangrove forest in the Philippines. The result showed that the aquaculture alternatives performed better than the forestry preservation alternative in terms of economic efficiency. Kramer et al (1995) used a combination of valuation tools (Contingent Valuation combined with Opportunity Cost Analysis and Recreation Demand Analysis) to investigate changes in environmental values resulting from the creation of Mantadia National Park in Madagascar. Kramer et al (1993) used Contingent Valuation Method to determine the value of tropical rainforest protection as a global environmental good. Using two approaches the authors determined the average willingness-to-pay of US citizens at US$ 24 to31 and extending to all US households, total willingness-to-pay was estimated at US$ 2180 to 2820 million per year. Sikoyo (1995), used the Contingent Valuation Method to determine community direct use benefits from Bwindi Impenetrable Forest National Park in Uganda; while Moyini & Uwimbabazi (2001) used the Travel Cost Method and the Contingent Valuation Method to determine the Mountain gorilla tourism value of Bwindi Impenetrable Forest National Park. The results showed a consumer surplus of US$ 100. Muramira (2000) estimated the value of the overall impact of Wayleave construction through Mabira at US$ 340,202 and suggested that this money be set aside to address the environmental impacts of the development. The author used inventory and market analysis, secondary information on resource usage and willingness-to-pay studies in comparable areas and project data. 5.2.3 Analytical framework The analytical approach adopted in this report consists of the following. 1. Resource values were estimated from the perspective of net benefit streams, annualised, and then their present values obtained by capitalising the average annual benefits stream using the Government of Uganda’s social 6 opportunity cost of capital of 12 percent. Benefit- cost analysis is based on discounting the benefits and costs attributable to a project over time and then comparing the present value of costs (PVC) with the present value of benefits (PVB). The present value of benefits is the sum of the discounted values of benefits in each year. Thus: 6 A social time preference rate (STP), reflecting the preference society has for present as opposed to future consumption, or the relative value it puts on the consumption of future generations. Discount rates for projects in developing countries usually range from 8% to 12%. The evaluator is best advised to use 10% or 12% The Economic Valuation of the Proposed Degazettement of Mabira CFR | 2011 35
Page 1: THE ECONOMIC VALUATION OF THE PROPO
Page 4 and 5: THE ECONOMIC VALUATION OF THE PROPO
Page 6 and 7: ACRONYMS AND ABBREVIATIONS SCOUL Su
Page 8 and 9: for in the National Forestry and Tr
Page 10 and 11: 5.0. THE CONSERVATION OPTION 31 5.1
Page 12 and 13: List of Boxes Box 1: Out-growers pr
Page 14 and 15: The pro-conservation groups who are
Page 16 and 17: Figure 1: Map of Mabira CFR showing
Page 18 and 19: The Economic Valuation of the Propo
Page 20 and 21: which include schist’s, phyllites
Page 22 and 23: Wattled Starling(Creatophora cinere
Page 24 and 25: Restricted-range butterflies record
Page 26 and 27: The demand for sugar has also been
Page 28 and 29: Table 7: Projected sugarcane produc
Page 32 and 33: 4.2. THE VALUE OF THE SUGAR SECTOR
Page 34 and 35: 4.3. COST OF PRODUCTION AND THE DET
Page 36 and 37: additional sugarcane they need from
Page 38 and 39: Table 11: Estimate sugar estate lan
Page 40 and 41: ) Opportunity of SCOUL leasing land
Page 42 and 43: then the government goes ahead and
Page 44 and 45: expected from the environment (Lett
Page 48 and 49: PVB = PVC = Where: 36 ∑ = t n t =
Page 50 and 51: Table 16: Value of Growing Stock Cl
Page 52 and 53: ased on household livelihoods. Bush
Page 54 and 55: 12,078 per annum by the number of h
Page 56 and 57: part of the area proposed for degaz
Page 60 and 61: to mature. Subsequently, conservati
Page 62 and 63: REFERENCES Adger, N., Brown, K., Ca
Page 64 and 65: Multinational enterprises in the pl
Page 66 and 67: Primates of Africa. The IUCN Red Da
Page 68 and 69: Edinburgh University, Scotland. Sim
Page 70 and 71: ANNEXES ANNEX 1 BIODIVERSITY DATA T
Page 72 and 73: Family Species Family Species Rutac
Page 74 and 75: Family Species Family Species Morac
Page 76 and 77: Table A2: Species list of birds rec
Page 78 and 79: Britton No. Species Common Name 467
Page 84 and 85: Table A3: Species list of Mammals (
Page 86 and 87: Table A4: Amphibians of Mabira Fore
Page 88 and 89: Tirumala petiverana African Blue Ti
Page 90 and 91: ANNEX 2 INVENTORY DATA Table III Ma
Page 92 and 93: Fig AI Icut id nonsimu sperurbitiac
Page 96:
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