Assessing the value of forest resources to rural households: A case of forest-fringe communities in the Northern Region of Ghana

Abstract

This study assessed the value of forest resources to rural households in forest-fringe communities in the Northern Region of Ghana. It also identified the factors that influence the amount of compensation (in terms of money) households were willing to accept to forego or limit the use of forest resources. We collected data from rural households in fringe communities to the Mole National Park and the Kenikeni Forest Reserve. Contingent valuation method was used to estimate the value of forest resources to rural households. Also, the Tobit model was used to investigate the determinants of the value of forest resources. The results show that households are willing to accept an average amount of GH¢3346.26 and GH¢1487.67 as annual compensation to forfeit the exploitation of market and non-market forest resources respectively. The Tobit model results show that education, age, income, farm size, remittances, membership to community-based organizations, access to extension services, distance from forest reserve and livestock wealth are factors influencing the average amount households are willing to accept as compensation. Based on the study outcomes, rural households should be educated on the importance of indirect forest resources. In line with the principle of fairness and equal rights and responsibility, a comprehensive ecological compensation scheme should be included in any ecological environment protection agenda of forest reserve areas. This protection agenda should not exclude households from exploiting non-market forest resources.