the economic valuation of the proposed ... - Nature Uganda

6.2. CONCLUSION
Despite the difficulties of estimating some of the goods
and services provided by a forest, an attempt was made
to arrive at the TEV of the area of impact in Mabira
CFR and compare it with the alternative of growing
sugarcane. In doing so, effort was made to ensure
that very conservative estimates were used for the
ecological services offered by the forest. On the other
hand, in arriving at net benefits of sugarcane growing,
the cost of land preparation was recognised but then
excluded from the calculations. The two actions in effect
meant that very conservative estimates were used in
estimating the benefits of conservation, while generous
allowances were made for those of sugarcane growing.
From the analysis carried out, it was clear that the benefits
of the conservation of Mabira CFR far exceeded those of
sugarcane growing. The respective total economic value
of conservation was estimated at US$ 45.1 compared to
US$ 29.9 million which is the net present value of the
annual benefits from the proposed sugar cane growing.
As already indicated, in addition to the economic
values, a number of policy issues were also raised or
highlighted. They include the need for compensation
at ‘fair and equal’ value, the current implied objective of
national self-sufficiency in sugar production; and land
acquisition options available to the developer.
The Economic Valuation of the Proposed Degazettement of Mabira CFR | 2011 49