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Alternative Use Systems for the Remaining Cloud Forest in Ethiopia and the Role of Arabica Coffee - A Cost-Benefit Analysis

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  • Reichhuber, Anke
  • Requate, Till

Abstract

This paper presents a cost-benefit analysis of three different use systems for the remaining cloud forests in Ethiopia which at present are being depleted at a rate of 8% per year. These use systems are traditional conversion to crop land, sustainable management of the forest (e.g. by growing high-quality semi-forest coffee), and strict protection. We find that conversion to cropland yields the highest net present income value for the local population, and at discount rates of 10% is even in the best interests of the country. For discount rates of at 5% or lower, sustainable forest use is in the best interests of the country. Taking into account the global benefits of biodiversity conservation and carbon storage, sustainable forest management yields the highest total economic value.

Suggested Citation

  • Reichhuber, Anke & Requate, Till, 2007. "Alternative Use Systems for the Remaining Cloud Forest in Ethiopia and the Role of Arabica Coffee - A Cost-Benefit Analysis," Economics Working Papers 2007-07, Christian-Albrechts-University of Kiel, Department of Economics.
  • Handle: RePEc:zbw:cauewp:5535
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    References listed on IDEAS

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    Cited by:

    1. Girma, Hiywot Menker & Hassan, Rashid M. & Hertzler, Greg, 2012. "Forest conservation versus conversion under uncertain market and environmental forest benefits in Ethiopia: The case of Sheka forest," Forest Policy and Economics, Elsevier, vol. 21(C), pages 101-107.

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    Keywords

    cost-benefit analysis; biodiversity; coffee; Ethiopia;

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