Local financial benefits of rain forests: comparative evidence from Amerindian societies in Bolivia and Honduras

Godoy R, Overman H, Demmer J, Apaza L, Byron E, Huanca T, Leonard W, Perez E, Reyes-Garcia V, Vadez V, Wilkie D, Cubas A, McSweeney K, Brokaw N

ECOLOGICAL ECONOMICS
40 (3): 397-409 MAR 2002

Abstract:
Researchers generally express the local value of tropical rain forests in dollars/ha/year. The approach is problematic because it produces low values to local users, underestimating the importance of the forest expressed as a share of household consumption or earnings. Here we contribute to valuation studies of rain forests by estimating the financial importance of the forest measured in three ways: (1) the contribution of forests to annual household consumption and (2) earnings; and (3) the value of a hectare of rain forest to villagers measured through the biological goods consumed and sold. We collected panel data on consumption and earnings from 81 households in four villages of two Amerindian societies in two nations (Tsimane', Bolivia; Tawahka, Honduras). Analyses suggest: (1) forests account for a large share of household consumption (median similar to 38.5%; range 14.65-53.11%); (2) forests contribute more to household consumption than to household earnings (median similar to 22.69%; range 16.56-44.81%); (3) the relative contribution of forests to household consumption and earnings falls among villages closer to towns; and (4) the range of values/year of rain forest/ha is US$7.10-9.70 using 1999 dollars or Us S18.46-46.56 using purchasing power parity indexes, below previous estimates. Results show much variation in forest values: valuation methods and stakeholder perspectives affect the variation. Given the variation, a useful strategy to promote forest conservation would transfer income to villagers to compensate them for non-local forest values. (C) 2002 Elsevier Science B.V. All rights reserved.

Author Keywords:
valuation, rain forest, consumption, earnings, Amerindians, Tsimane', Tawahka, Bolivia, Honduras, environmental compensation payments

KeyWords Plus:
PRIVATE TIME PREFERENCE, DEFORESTATION, VALUATION

Addresses:
Godoy R, Brandeis Univ, Heller Sch Social Policy & Management, Sustainable Int Dev Program, Waltham, MA 02454 USA
Brandeis Univ, Heller Sch Social Policy & Management, Sustainable Int Dev Program, Waltham, MA 02454 USA
Univ Amsterdam, Inst Biodivers & Ecosyst Dynam, NL-1090 GB Amsterdam, Netherlands
Univ Mayor San Andres, Dept Biol, La Paz 10077, Bolivia
Univ Florida, Dept Anthropol, Gainesville, FL 32611 USA
Inst Cultural Aruwiyiri, La Paz 9268, Bolivia
Northwestern Univ, Dept Anthropol, Evanston, IL 60201 USA
Univ Florida, Agron Physiol Lab, Gainesville, FL USA
Wildlife Conservat Soc, Waltham, MA 02451 USA
Honduras Coral Reef Fund, Atlantida, Honduras
Ohio State Univ, Dept Geog, Columbus, OH 43210 USA
Univ Puerto Rico, Inst Trop Ecosyst Studies, San Juan, PR 00936 USA

Publisher:
ELSEVIER SCIENCE BV, PO BOX 211, 1000 AE AMSTERDAM, NETHERLANDS

IDS Number:
549WC

ISSN:
0921-8009