The total economic valuation of natural resources: perceived community livelihood values of Mukogodo Forest, Laikipia, Kenya

Abstract

The arm of this study was to establish the perceived Total Economic Value (TEV) of Mukogodo Forest in Laikipia District, a dryland area of Kenya. There are four group ranches that benefits from the forest. To determine the TEV specific attention was given to direct use values, indirect use values and existence values. The study examined the perceived values of various environmental goods and services and how the local people benefit from them. The study tested the hypotheses and showed that, using WTP and WTA, there was significant difference in the perceived total economic value of Mukogodo Forest among members of the four group ranches.

A sample of 168 households from four community group ranches was selected. The selection was done using stratified sampling technique. The stratification was done according to the group ranches. Each stratum was then divided into a number of clusters. The number of clusters in each group ranch was proportional to the number of households in the stratum. The quota sampling technique was applied in each cluster. For primary data collection, the study mainly relied on questionnaires, focus group discussions, key informants and field observations. Source of secondary data included working reports, library books, Internet and maps. The study used contingent valuation and market price methods to establish the perceived value of various environmental goods and services in terms of willingness to pay and willingness to accept compensation. Data analysis was done with aid of Statistical ".,. ,._. Package for Social Scientists (SPSS). The study...used ANOVA to test the hypothesis

Regression analysis of WTP/WTA and socio-economi~ ~ables such as age, income, and educationwas also used to test their relationships.

The results were aggregated to provide the two extremes estimators of the Total Economic Value (TEV). Using willingness to pay the TEV for Mukogodo Forest was estimated to be KShs. 5 billion. However using willingness to accept compensation, the TEV of the forest was estimated at KShs. 22 billion. The statistical analysis showed that use of WTP and WTA v

was strongly associated with distance from the forest, income, education, age and gender among other socio economic indicators. From the study it is clear that there is inadequate evidence to show that there is significant difference in the perceived Total Economic Value of Mukogodo Forest among members of different group ranches.