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The impacts of gold mining on the welfare of local farmers in Asutifi-North District in Ghana: A quantitative and multi-dimensional approach

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  • Worlanyo, Adator Stephanie
  • Alhassan, Sikpaam Issaka
  • Jiangfeng, Li

Abstract

Farming is the major economic activity of the people in the Asutifi-North District of Ghana however, farmers in this District are mainly characterized by small-farm holdings of less than 3 acres per farmer as a result of shrinking agricultural land due to increasing small and large-scale mining in the District. Currently, mining has become the major competitor to farming in terms of land-use conversion within the District. Though mining activities have led to several land-use conversions, little or no studies have been done in that regard. Studies over the years have focused on the environmental impacts of mining with less emphasis on the impacts of mining on farmers' welfare. This paper examines the factors influencing farmers' participation in land-use conversion for mining, its impacts on farmers' welfare, and the criteria of compensation given to affected farmers by the large-scale mine. Multi-staged sampling comprising both purposive and random sampling techniques was employed to gather data from 300 farmers in 5 mining communities in the district. The data obtained were analyzed using descriptive statistics and the Heckman two-stage model involving the Probit and OLS equations. Results indicate that variables such as farmer's age, sex, distance from household to farm, farmer's experience, total land size, and distance to the nearest access road were factors that influenced farmers' decision to participate in land-use conversion. Also, participants of land-use conversion had an annual income of (GH₵ 189)-$31.68 more than the non-participants however, their incomes are not sustainable hence compelling them into illegal mining. This paper has a guiding significance for policy decision making for gold mining in Ghana.

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  • Worlanyo, Adator Stephanie & Alhassan, Sikpaam Issaka & Jiangfeng, Li, 2022. "The impacts of gold mining on the welfare of local farmers in Asutifi-North District in Ghana: A quantitative and multi-dimensional approach," Resources Policy, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:jrpoli:v:75:y:2022:i:c:s0301420721004669
    DOI: 10.1016/j.resourpol.2021.102458
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    1. Carlos Mestanza-Ramón & Demmy Mora-Silva & Giovanni D’Orio & Enrique Tapia-Segarra & Isabel Dominguez Gaibor & José Fernando Esparza Parra & Carlos Renato Chávez Velásquez & Salvatore Straface, 2022. "Artisanal and Small-Scale Gold Mining (ASGM): Management and Socioenvironmental Impacts in the Northern Amazon of Ecuador," Sustainability, MDPI, vol. 14(11), pages 1-16, June.
    2. Adator, Stephanie Worlanyo & Wu, Qiaosheng & Lambongang, Munkaila & Otoo, Samuel Leumas & Bosah, Chukwunonso Philip & Nimako, Kwaku Ohene, 2023. "Farmers' perception of the impact of gold mining on shrinking agricultural land and their livelihood in the Asutifi-North District," Resources Policy, Elsevier, vol. 81(C).
    3. Anaafo, David & Nutsugbodo, Ricky Yao & Adusu, Daniel, 2023. "Mining and sustainable development in the Asutifi North District, Ghana," Resources Policy, Elsevier, vol. 80(C).
    4. Yuxuan Xu & Jie Lyu & Ying Xue & Hongbin Liu, 2022. "Does the Agricultural Productive Service Embedded Affect Farmers’ Family Economic Welfare Enhancement? An Empirical Analysis in Black Soil Region in China," Agriculture, MDPI, vol. 12(11), pages 1-22, November.

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