Economic Valuation of Forest Products: Evidence from Mount Elgon Park, Kapchorwa, Uganda
A great proportion of communities in Sub-Saharan Africa derive their livelihoods from forest products and services. The Mount Elgon region reflects this perspective; however, empirical evidence on the contribution of the forest ecosystem on the welfare of local people is limited. This study seeks to address this through: estimating the value of tradable forest products; establishing the determinants of participation in forest-related trade and the socioeconomic factors that influence forest related income. The study was carried out in Kapchorwa District, Uganda. A structured questionnaire was administered to 435 households selected through stratified random sampling. A Binary Probit Model was chosen because the dependent variable was a demi (1, 0), while a left censored Tobit Model was used in order to restrict positive income values. Age, household size and forest distance significantly affected forest-related trade at 99% whereas group membership and resource access significantly affected forest income at 95%. Socio-economic and institutional characteristics, are key determinants for participation in forest-related trade, and affect forest income. Forest trade is used as a safety net and is mainly done by individuals without regard to sustainability. Clear process of managing the forest should be identified and enforced in order to reduce the forest pressure.
Forest-Related Trade, Forest Products, Non-timber Forest Products, Collaborative Management Forest Agreement
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