IDEAS home Printed from https://ideas.repec.org/a/adm/journl/v7y2018i3p36-55.html
   My bibliography  Save this article

Significant Contribution of Community Forests to Users’ Household Income in Far-West Mid-Hill of Nepal

Author

Listed:
  • Bhakta Raj Giri
  • Xie Yi
  • Pradeep Baral
  • Ramesh Bikram Bogati

Abstract

The study was carried out in three Community Forest User Groups (CFUGs) in Achham district of Nepal. This paper examines the benefits and costs incurred by three income class households (HHs) from Community Forest (CF) over a period of 10 years using semi-structured interviews with 212 randomly selected HHs and 3 sub-group discussions. The findings of the research reveal that the rich HHs derived the highest mean annual gross benefit (35.23%) followed by middle (32.47%) and poor (32.30%) income class HHs respectively. Likewise, rich HHs incurred the highest mean annual gross cost (49.82%) followed by middle (30.47%) and poor (19.71%) income class HHs respectively. Overall, benefits gained by the HHs was 17 times the cost incurred. While benefits from forest products constituted the highest share (97.26%) of benefits, conversely, forest product collection costs constituted the highest share (53.33%) of costs . The results of the research also suggest that rich HHs received the highest Net Present Value (US$ 2537.80) followed by poor (US$ 2504.11) and middle (US$ 2463.89) income class HHs over 10 years at 10% discount rate. The Benefit Cost Ratio for poor, middle and rich income class HHs was found to be 25.52, 16.32 and 11.14 respectively. Household level income from CF is significantly influenced by many bio-physical, economic and demographic variables. The analytical results suggested that education of HH head, distance to CF boundary from user’s home, age of HH head, and HH economic status were statistically significant and showed the negative linear relationship wth HH income from CF. On other hand, livestock unit and HH labor force were statistically significant as expected a priori and showed linear relationship with HH income from CF. Based on these findings, appropriate cost-benefit sharing mechanism were suggested with regular silvicultural operations to empower poor households in CF activities.

Suggested Citation

  • Bhakta Raj Giri & Xie Yi & Pradeep Baral & Ramesh Bikram Bogati, 2018. "Significant Contribution of Community Forests to Users’ Household Income in Far-West Mid-Hill of Nepal," International Journal of Sciences, Office ijSciences, vol. 7(03), pages 36-55, March.
    • Handle: RePEc:adm:journl:v:7:y:2018:i:3:p:36-55
    DOI: 10.18483/ijSci.1632
    as

    Download full text from publisher

    File URL: https://www.ijsciences.com/pub/article/1632
    Download Restriction: no
    File URL: https://www.ijsciences.com/pub/pdf/V72018031632.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.18483/ijSci.1632?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Rai, Rajesh K. & Scarborough, Helen, 2015. "Nonmarket valuation in developing countries: incorporating labour contributions in environmental benefits estimates," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(4), October.
    2. Adhikari, Bhim & Di Falco, Salvatore & Lovett, Jon C., 2004. "Household characteristics and forest dependency: evidence from common property forest management in Nepal," Ecological Economics, Elsevier, vol. 48(2), pages 245-257, February.
    3. Dreze, Jean & Stern, Nicholas, 1987. "The theory of cost-benefit analysis," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 2, chapter 14, pages 909-989, Elsevier.
    4. Rai, Rajesh Kumar & Scarborough, Helen, 2013. "Economic value of mitigation of plant invaders in a subsistence economy: incorporating labour as a mode of payment," Environment and Development Economics, Cambridge University Press, vol. 18(2), pages 225-244, April.
    5. Adhikari, Bhim, 2005. "Poverty, property rights and collective action: understanding the distributive aspects of common property resource management," Environment and Development Economics, Cambridge University Press, vol. 10(1), pages 7-31, February.
    6. Chambers, Robert, 1994. "The origins and practice of participatory rural appraisal," World Development, Elsevier, vol. 22(7), pages 953-969, July.
    7. Rajesh K. Rai & Helen Scarborough, 2015. "Nonmarket valuation in developing countries: incorporating labour contributions in environmental benefits estimates," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(4), pages 479-498, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Suresh Chaudhary & Yukuan Wang & Amod Mani Dixit & Narendra Raj Khanal & Pei Xu & Bin Fu & Kun Yan & Qin Liu & Yafeng Lu & Ming Li, 2020. "A Synopsis of Farmland Abandonment and Its Driving Factors in Nepal," Land, MDPI, vol. 9(3), pages 1-22, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Meginnis, Keila & Hanley, Nick & Mujumbusi, Lazaaro & Lamberton, Poppy H.L., 2020. "Non-monetary numeraires: Varying the payment vehicle in a choice experiment for health interventions in Uganda," Ecological Economics, Elsevier, vol. 170(C).
    2. Rai, Rajesh Kumar & Shyamsundar, Priya & Nepal, Mani & Bhatta, Laxmi Dutt, 2015. "Differences in demand for watershed services: Understanding preferences through a choice experiment in the Koshi Basin of Nepal," Ecological Economics, Elsevier, vol. 119(C), pages 274-283.
    3. Li, Liqing & Long, Dede, 2022. "Household Preference for Impure Public Goods - an Application of Community Gardens," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322142, Agricultural and Applied Economics Association.
    4. Kassahun, Habtamu Tilahun & Jacobsen, Jette Bredahl & Nicholson, Charles F., 2020. "Revisiting money and labor for valuing environmental goods and services in developing countries," Ecological Economics, Elsevier, vol. 177(C).
    5. Rajesh K. Rai & Mani Nepal & Laxmi D. Bhatta & Saudamini Das & Madan S. Khadayat & E. Somanathan & Kedar Baral, 2019. "Ensuring Water Availability to Water Users through Incentive Payment for Ecosystem Services Scheme: A Case Study in a Small Hilly Town of Nepal," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(04), pages 1-26, October.
    6. Roshan Sherchan & Rajesh Kumar Rai & Roshani Rai & Arun Dhakal, 2022. "Designing a community-based insurance scheme to reduce human–wildlife conflict," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5112-5130, April.
    7. Hagedoorn, Liselotte C. & Koetse, Mark J. & van Beukering, Pieter J.H. & Brander, Luke M., 2021. "Reducing the finance gap for nature-based solutions with time contributions," Ecosystem Services, Elsevier, vol. 52(C).
    8. Thondhlana, Gladman & Muchapondwa, Edwin, 2014. "Dependence on environmental resources and implications for household welfare: Evidence from the Kalahari drylands, South Africa," Ecological Economics, Elsevier, vol. 108(C), pages 59-67.
    9. Yadav, Bhagwan Dutta & Bigsby, Hugh & MacDonald, Ian, 2015. "How can poor and disadvantaged households get an opportunity to become a leader in community forestry in Nepal?," Forest Policy and Economics, Elsevier, vol. 52(C), pages 27-38.
    10. Bir Chhetri & Helle Larsen & Carsten Smith-Hall, 2015. "Environmental resources reduce income inequality and the prevalence, depth and severity of poverty in rural Nepal," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 17(3), pages 513-530, June.
    11. Bocci, Corinne F., 2023. "Assessing the private and social benefits of forest concessions in the Maya Biosphere Reserve," 2023 Annual Meeting, July 23-25, Washington D.C. 335973, Agricultural and Applied Economics Association.
    12. Jane Kabubo‐Mariara, 2013. "Forest‐poverty nexus: Exploring the contribution of forests to rural livelihoods in Kenya," Natural Resources Forum, Blackwell Publishing, vol. 37(3), pages 177-188, August.
    13. Soltani, Arezoo & Angelsen, Arild & Eid, Tron & Naieni, Mohammad Saeid Noori & Shamekhi, Taghi, 2012. "Poverty, sustainability, and household livelihood strategies in Zagros, Iran," Ecological Economics, Elsevier, vol. 79(C), pages 60-70.
    14. J. M. Gibson & D. Rigby & D. A. Polya & N. Russell, 2016. "Discrete Choice Experiments in Developing Countries: Willingness to Pay Versus Willingness to Work," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 65(4), pages 697-721, December.
    15. Paudel, Jayash, 2016. "Community-Managed Forests and Household Welfare: Empirical Evidence from Nepal," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235481, Agricultural and Applied Economics Association.
    16. Lindy Charlery & Martin R. Nielsen & Henrik Meilby & Carsten Smith-Hall, 2016. "Effects of New Roads on Environmental Resource Use in the Central Himalaya," Sustainability, MDPI, vol. 8(4), pages 1-20, April.
    17. Chhetri, Bir Bahadur Khanal & Lund, Jens Friis & Nielsen, Øystein Juul, 2012. "The public finance potential of community forestry in Nepal," Ecological Economics, Elsevier, vol. 73(C), pages 113-121.
    18. Mazunda, John & Shively, Gerald, 2015. "Measuring the forest and income impacts of forest user group participation under Malawi's Forest Co-management Program," Ecological Economics, Elsevier, vol. 119(C), pages 262-273.
    19. Adhikari, Bhim, 2021. "The Economics of Common Pool Resources: A Review," Ecology, Economy and Society - the INSEE Journal, Indian Society of Ecological Economics (INSEE), vol. 4(01), January.
    20. Okumu, Boscow & Muchapondwa, Edwin, 2020. "Welfare and forest cover impacts of incentive based conservation: Evidence from Kenyan community forest associations," World Development, Elsevier, vol. 129(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adm:journl:v:7:y:2018:i:3:p:36-55. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Staff ijSciences (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.