Modelling the Opportunity Cost of Reforestation in the Upper East Region of Ghana
Andrea Gonella Jimenez1, Tobias Wünscher2, Jan Börner2
1University of Bonn, Germany
Payments for environmental services (PES) have become increasingly popular tools to promote forest conservation as well as re- and afforestation including in developing countries. A common challenge in the design of PES in developing country contexts is to balance conservation and poverty alleviation goals. Addressing this challenge requires targeting strategies that integrate knowledge about farm-household characteristics and the potential for additional ecosystem service provision. In this article we test alternative approaches to predicting farm-household opportunity costs of reforestation contracts against a revealed preference benchmark derived from hypothetical auctions conducted in twelve communities, across three neighbouring districts, in the Upper East Region of Ghana with a final sample of 219 observations.
Keywords: Agriculture, Ghana, hierarchical linear model, opportunity cost, payment for environmental services, reforestation, sustainable livelihoods framework
Contact Address: Andrea Gonella Jimenez, University of Bonn, Bonn, Germany, e-mail: agonellajgmail.com