Economic valuation of forest ecosystem services and its implications on conservation strategies in East Mau forest, Kenya

Abstract

This thesis quantifies the economic values of East Mau forest ecosystem using Market based, Contingent Valuation and Benefit Transfer techniques. Data was collected from households, sawmills and forest product traders within and adjacent to East Mau forest. Additional data were obtained from published and unpublished sources. Descriptive statistics and parametric tests were applied to describe forest ecosystem values. Difference in forest incomes across locations; ethnicity and wealth classes were tested using comparison of means and ANOVA. A multiple regression model was used to identify determinants of forest dependence with relative forest income and socio-economic characteristics as dependent and independent variables respectively. The total economic value (TEV) of East Mau forest ecosystem was KES 24billion (US$266million) per annum and indirect use values formed the bulk of TEV at KES 19.7billion (US$219 million) (82.4%), direct use values was KES 4.2billion (US$ 46million) (17.5%), and non-use values was KES 31million (US$ 347, 000 (0.1%). The bulk (96%) of direct use values were appropriated by local communities. Carbon sequestration and oxygen generation contributed 79% of indirect use values and 65% of the TEV. The local community and government of Kenya are subsidizing conservation of East Mau by KES 650million (US$7.2million) per annum. The bulk of ecosystems values (65%) accrue to global community and only 35% are appropriated by local communities and government of Kenya. Forest income contributed 33% of household income and poor households are more dependent on forests resources. However, in absolute terms, the wealthy derived greater monetary benefits from forest resources. The key determinants of forest dependence are offfarm income and number of cattle. These results provide valuable information on the types and magnitude of values that could be relevant in decision making concerning conservation and management of East Mau forest ecosystem for enhanced ecosystem services and livelihoods.