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Economic Assessment of Best Management Practices in the Mara River Basin: Toward Implementing Payment for Watershed Services

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  • George Atisa
  • Mahadev Bhat
  • Michael McClain

Abstract

The Mara River in East Africa is currently experiencing poor water quality and increased fluctuations in seasonal flow. Improved water quality will require upstream farmers and foresters to adopt Best Management Practices (BMPs), which might cost them considerably. This study proposes a Payment for Watershed Services (PWS) mechanism. This is a market-based approach, whereby downstream water users would pay upstream watershed service providers towards the costs of BMPs implementation. This study analyzes the technical feasibility and economic viability of adapting selected BMPs and provides cost estimates of a PWS program. Using three criteria of water quality improvement, economic feasibility, and technical suitability, a detailed economic opportunity cost analysis revealed that farmers would indeed incur economic losses for all BMPs except no-till farming. We also developed a multi-criteria (demographic and environmental) methodology for identifying land areas to be placed under BMPs. More than 122,000 ha of land would require BMPs, including a moratorium on agriculture inside the Mau Forest Complex. The initial per hectare opportunity costs across the five highest ranked BMPs ranged from US$ 272 to US$ 926. Using these cost estimates, the paper draws some valuable policy and management insights on how to finance BMP implementation. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • George Atisa & Mahadev Bhat & Michael McClain, 2014. "Economic Assessment of Best Management Practices in the Mara River Basin: Toward Implementing Payment for Watershed Services," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 28(6), pages 1751-1766, April.
    • Handle: RePEc:spr:waterr:v:28:y:2014:i:6:p:1751-1766
    DOI: 10.1007/s11269-014-0585-3
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    References listed on IDEAS

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    7. Lina Sun & Wenxi Lu & Qingchun Yang & Jordi Martín & Di Li, 2013. "Ecological Compensation Estimation of Soil and Water Conservation Based on Cost-Benefit Analysis," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(8), pages 2709-2727, June.
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    1. Parita Shah & George Atisa, 2021. "Environmental education and awareness: the present and future key to the sustainable management of Ramsar convention sites in Kenya," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 21(4), pages 611-630, December.
    2. O'Brien, G. C. & Dickens, Chris & Hines, E. & Wepener, V. & Stassen, R. & Landis, W. G., 2017. "A regional scale ecological risk framework for environmental flow evaluations," Papers published in Journals (Open Access), International Water Management Institute, pages 22(2):957-9.
    3. Qin Tu & Hong Li & Xinkun Wang & Chao Chen & Yin Luo & Frank Dwomoh, 2014. "Multi-Criteria Evaluation of Small-Scale Sprinkler Irrigation Systems Using Grey Relational Analysis," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 28(13), pages 4665-4684, October.

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