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Economic valuation of communal rangelands in the Eastern Cape Province of South Africa

The exploitation and conversion of rangeland ecosystems is often explained by economists as being the result of an undervaluation of the goods and services provided by the rangelands. Undervaluation of rangelands may contribute to their mismanagement or their transformation to monoculture, such as livestock or gathering. Similarly, this may lead to inappropriate policy recommendations and prescriptions. This study undertakes a valuation exercise in an effort to address causes of undervaluation. The objective of the study is to estimate the annual direct, indirect and non-use values per household of communal rangelands in the Eastern Cape Province, based on both primary and secondary data. The exercise incorporates the two major direct uses, both marketed and non-marketed, of rangelands - livestock and gathering. Contingent valuation method based on stated preferences by individual household was used to value the indirect and non-use values of the communal rangelands (e.g. erosion protection and burial sites). Data was collected using PRAs, structured questionnaires and interviews by trained enumerators. The study shows that half of the households owned livestock, which is the main economic use of the rangelands and gathering of natural resources also made an economic contribution. Every household was involved in collection of range resources such as fuel wood, wild fruits, thatch grass, building poles, hunting, fishing make a significant contribution to the direct use values: in the case of gathering it shows that there is “hidden harvest” of many of the natural resources from the rangelands. Indirect and non-use values are shown to be important in the communal areas but are difficult to quantify; the results of these are based on qualitative analysis. Keywords: communal rangelands, demand curve, direct use values, indirect use values, individuals’ preferences, non-use values, willingness-to-accept and willingness-to-pay.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:ufh/vital:11166
Date January 2008
CreatorsGombakomba, Gift
PublisherUniversity of Fort Hare, Faculty of Science & Agriculture
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis, Masters, MSc Agric (Agricultural Economics)
Formatxiii, 152 leaves; 30 cm, pdf
RightsUniversity of Fort Hare

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