Exploring demand for forestry in Lake Victoria Basin (Western Kenya): An econometric approach
AbstractThis paper determines the demand for a forestry program amongst rural households in western Kenya. It is based on a field survey with 277 households, using a stratified random sampling approach. The study follows attribute based method to elicit farmers’ preferences. Demand is measured in terms of additional number of trees that a household is willing to plant under different price schedules, including direct economic incentive to plant new seedlings. The mean willingness to plant new trees per household increases from 44 trees when farmers have to pay 10ksh/seedling, to 244 trees when farmers receive a payment of 10ksh/seedling. The paper uses fixed effects, random effects and random effect tobit models to estimate relevant parameters. Hausman specification test is returned insignificant, while implies that random effects specification is not incorrect. Price of seedlings (negative effect), availability of timber species (positive effect), gender of the respondent (men likely to plant more trees than women), and availability of agricultural labor at the household (positive) were all found to be significant. Increase in price of a seedling by 1Ksh reduced demand by nine seedlings, while addition of an adult who works full-time on the family farm will raise the demand for seedlings by 18. Furthermore, farmers in Yala River basin were likely to plant more trees than those in the Nyando River basin.
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Bibliographic InfoPaper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida with number 6347.
Date of creation: 2008
Date of revision:
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More information through EDIRC
Kenya; Lake Victoria; demand; tree seedlings; attribute based method; Demand and Price Analysis; Resource /Energy Economics and Policy; C23; Q23; Q57;
Find related papers by JEL classification:
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
- Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
This paper has been announced in the following NEP Reports:
- NEP-AGR-2008-11-18 (Agricultural Economics)
- NEP-ALL-2008-11-18 (All new papers)
- NEP-ENV-2008-11-18 (Environmental Economics)
- NEP-LAB-2008-11-18 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jindal, R. & Swallow, B. & Kerr, J., 2006. "Status of carbon sequestration projects in Africa: potential benefits and challenges to scaling up," Working Papers b14441, World Agroforestry Centre, Library Department.
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