Economic valuation of the Okavango Delta can support decision making in a complex socio-economic environment in which economic development depends on a deep understanding of the value of biodiversity. The use of a natural resource accounting framework in determining the value of goods and services is crucial. The total economic value of the Okavango Delta was estimated by using primary (household valuation) and secondary data. A natural resource accounting framework was used. The components of the total economic value were the composition of wild herbivores and vegetation, and the functional values, which comprised direct use values of wild herbivores, river reed, thatching grass, wild fruits, fuelwood and palm leaves, indirect consumptive values of honey production, carbon sequestration, livestock grazing, milk production, non-consumptive use of tourism, and existence and bequest values. The values of the composition and function are expressed in per/ha values. The value of the composition of wild herbivores was estimated at P1 444 992 400 (US$ 294 850 699.2) or US$ 27.4/ha, while the functional value was estimated at P185 913 117.4 (US$ 37 527 840.96 or US$ 619.77/ha. Of the estimated direct use values of vegetation, river reed had the highest value of US$ 29.0/ha, while the highest value among indirect use values was that of milk production (US$ 8.5/ha). These values of selected resources reflect the contribution of the value of biodiversity of the Okavango Delta to the overall economy of the country and represent initial estimates of costs to society if these resources are lost. The estimated values can be used to raise awareness among decision makers of the economic benefits of conserving the Okavango Delta. Overall, the findings showed that the various components of the total economic value of the Okavango Delta were comparable to other wetlands in the region.Thesis (PhD (Agricultural Economics))--University of Pretoria, 2006.Agricultural Economics, Extension and Rural Developmentunrestricte

Mmopelwa, Gagoitseope

Thesis (PhD (Agricultural Economics))--University of Pretoria, 2006.Economic valuation of the Okavango Delta can support decision making in a complex socio-economic environment in which economic development depends on a deep understanding of the value of biodiversity. The use of a natural resource accounting framework in determining the value of goods and services is crucial. The total economic value of the Okavango Delta was estimated by using primary (household valuation) and secondary data. A natural resource accounting framework was used. The components of the total economic value were the composition of wild herbivores and vegetation, and the functional values, which comprised direct use values of wild herbivores, river reed, thatching grass, wild fruits, fuelwood and palm leaves, indirect consumptive values of honey production, carbon sequestration, livestock grazing, milk production, non-consumptive use of tourism, and existence and bequest values. The values of the composition and function are expressed in per/ha values. The value of the composition of wild herbivores was estimated at P1 444 992 400 (US$ 294 850 699.2) or US$ 27.4/ha, while the functional value was estimated at P185 913 117.4 (US$ 37 527 840.96 or US$ 619.77/ha. Of the estimated direct use values of vegetation, river reed had the highest value of US$ 29.0/ha, while the highest value among indirect use values was that of milk production (US$ 8.5/ha). These values of selected resources reflect the contribution of the value of biodiversity of the Okavango Delta to the overall economy of the country and represent initial estimates of costs to society if these resources are lost. The estimated values can be used to raise awareness among decision makers of the economic benefits of conserving the Okavango Delta. Overall, the findings showed that the various components of the total economic value of the Okavango Delta were comparable to other wetlands in the region.Agricultural Economics, Extension and Rural Developmentunrestricte

UPSpace at the University of Pretoria

University of Pretoria etd – Mmopelwa, G  (2006)    The value of the Okavango delta: A natural resource accounting approach        by   Gagoitseope Mmopelwa          A Thesis submitted in partial fulfillment of the requirement for the Degree of Doctor of Philosophy     In the Faculty of Natural and Agricultural Sciences Department of Agricultural Economics, Extension and Rural Development University of Pretoria   Promoter: Professor James N. Blignaut      Professor R. Hasssan       July 2006    University of Pretoria etd – Mmopelwa, G  (2006)  ii  ABSTRACT  Economic valuation of the Okavango Delta can support decision making in a complex socio-economic environment in which economic development depends on a deep understanding of the value of biodiversity. The use of a natural resource accounting framework in determining the value of goods and services is crucial. The total economic value of the Okavango Delta was estimated by using primary (household valuation) and secondary data. A natural resource accounting framework was used. The components of the total economic value were the composition of wild herbivores and vegetation, and the functional values, which comprised direct use values of wild herbivores, river reed, thatching grass, wild fruits, fuelwood and palm leaves, indirect consumptive values of honey production, carbon sequestration, livestock grazing, milk production, non-consumptive use of tourism, and existence and bequest values. The values of the composition and function are expressed in per/ha values. The value of the composition of wild herbivores was estimated at P1 444 992 400 (US$ 294 850 699.2) or US$ 27.4/ha, while the functional value was estimated at P185 913 117.4 (US$ 37 527 840.96 or US$ 619.77/ha. Of the estimated direct use values of vegetation, river reed had the highest value of US$ 29.0/ha, while the highest value among indirect use values was that of milk production (US$ 8.5/ha). These values of selected resources reflect the contribution of the value of biodiversity of the Okavango Delta to the overall economy of the country and represent initial estimates of costs to society if these resources are lost. The estimated values can be used to raise awareness among decision makers of the economic benefits of conserving the Okavango Delta. Overall, the findings showed that the various components of the total economic value of the Okavango Delta were comparable to other wetlands in the region.       University of Pretoria etd – Mmopelwa, G  (2006)  iii ACKNOWLEDGEMENTS   I would like to thank my supervisor, Professor James N. Blignaut for his never-ending guidance throughout this work. I thank Prof. R. Hassan for his critical comments which contributed to improvement of this work. My special thanks also go to Dr Jon Barnes who provided a lot of guidance in the initial stages of this work. I would also like to thank the University of Botswana for the financial support. My appreciation also goes to the research assistants, Karabo, Gaone and Ephraim who assisted with field data collection and entry for the household and tourism survey. Special thanks also go to the respondents in Shakawe, Etsha-13 and Shorobe village as well as tourists who gave valuable information in the surveys. I would also like to extend my gratitude to the personnel who provided information in various ways, including personal communications. These are N. Tlhomelang at the Department of Water Affairs, W. Mahabile at the Department of Agricultural Research, B. Gojamang at the Department of Wildlife and National Parks, O. Gaebope at the Department of Animal Health and Production, E. Madisa at the Department of Crop Production and Forestry, H. Mwakenja at the Water Unit of the North West District Council, and J. Mbaiwa at the Harry Oppenheimer Okavango Research Centre.  My special appreciation goes to my wife, Agnes, who provided the courage throughout this work.  University of Pretoria etd – Mmopelwa, G  (2006)  iv  TABLE OF CONTENTS   Page Chapter 1............................................................................................................................. 1 1.1 Background......................................................................................................... 1 1.2 Motivation........................................................................................................... 2 1.3 Statement of the problem.................................................................................... 4 1.4 Research objectives............................................................................................. 7 1.5 Overview of methodology .................................................................................. 8 1.6 Structure of the thesis.......................................................................................... 9 Chapter 2........................................................................................................................... 10 2.1 Introduction....................................................................................................... 10 2.2 General characteristics of the country............................................................... 10 2.2.1 Physical characteristics ............................................................................. 10 2.2.2 The economy of Botswana........................................................................ 13 2.2.3 The relevance of the study to the economy of Botswana ......................... 18 2.3 The Okavango Delta ......................................................................................... 19 2.3.1 Location and resources ............................................................................. 19 2.3.2 Social and Economic Significance of the Okavango Delta ...................... 23 2.3.3 Property right regimes in the Delta........................................................... 27 2.4 Overview of Natural Resources Management Policies, Programs and Acts .... 30 2.4.1 Water Resources ....................................................................................... 30 2.4.2 Tribal Land................................................................................................ 31 2.4.3 Agricultural Resources.............................................................................. 31 2.4.4 Fish resources............................................................................................ 31 2.4.5 Conservation and utilization of wildlife ................................................... 32 2.4.6 Tourism..................................................................................................... 33 2.4.7 The conservation and management of elephants ...................................... 33 2.4.8 National parks and wildlife conservation ................................................. 34 2.4.9 Ramsar Convention on Wetlands.............................................................. 35 2.4.10 Community Based Natural Resource Management (CBNRM)................ 35 2.4.11 Conservation and utilization of wetlands.................................................. 36 2.5 Chapter Conclusion........................................................................................... 37 Chapter 3........................................................................................................................... 38 3.1 Introduction....................................................................................................... 38 3.2 The concept of sustainable development and capital theory ............................ 38 3.2.1 Some indicators of sustainability .............................................................. 44 3.3 National Income Accounting and its deficiencies ............................................ 48 3.4 What is Natural Resource Accounting?............................................................ 51 3.5 Application of natural resource accounting in resource management .............. 53 3.5.1 Mineral Resources .................................................................................... 53 3.5.2 Forest resources ........................................................................................ 57 3.5.3 Water and fish resources........................................................................... 59 University of Pretoria etd – Mmopelwa, G  (2006)  v 3.6 The status of natural resource accounting in Botswana.................................... 59 3.7 Biodiversity conservation and resource accounting ......................................... 61 3.7.1 Definitions, value and loss of biodiversity ............................................... 61 3.7.2 The structure, composition, and function of an ecosystem....................... 64 3.8 Chapter conclusion............................................................................................ 74 Chapter 4........................................................................................................................... 75 4.1 Introduction....................................................................................................... 75 4.2 Conceptual framework...................................................................................... 75 4.2.1 Physical accounts ...................................................................................... 76 4.3 General methodology........................................................................................ 87 4.3.1 Direct consumptive use............................................................................. 87 4.3.2 Direct non-consumptive use values .......................................................... 91 4.3.3 Indirect consumptive use values ............................................................... 94 4.3.4 Non–use values (Preservation values) ...................................................... 98 Chapter 5......................................................................................................................... 101 5.1 Introduction..................................................................................................... 101 5.2 Accounting for stock of wild herbivores and vegetation of the Okavango Delta region: Composition values ........................................................................................ 101 5.2.1 Wild herbivores....................................................................................... 101 5.2.2 Vegetation ............................................................................................... 106 5.3 Direct use values from the Okavango Delta ................................................... 108 5.3.1 Wild herbivores....................................................................................... 108 5.3.2 Vegetation ............................................................................................... 113 5.3.3 Water supply and use .............................................................................. 123 5.4 Indirect use values........................................................................................... 126 5.4.1 Honey production.................................................................................... 126 5.4.2 Carbon sequestration............................................................................... 127 5.4.3 Livestock grazing.................................................................................... 128 5.4.4 Milk production ...................................................................................... 131 5.5 Non-consumptive use values .......................................................................... 132 5.6 Non-use values................................................................................................ 139 5.6.1 Households’ willingness to pay .............................................................. 139 5.6.2 Tourists’ willingness to pay .................................................................... 141 5.7 Chapter conclusion.......................................................................................... 143 Chapter 6......................................................................................................................... 147 6.1 Introduction..................................................................................................... 147 6.2 Summary of results ......................................................................................... 147 6.3 Discussion....................................................................................................... 148 6.3.1 Composition value for wild herbivores................................................... 148 6.3.2 Direct use value of herbivores ................................................................ 150 6.3.3 Direct use value of vegetation................................................................. 150 6.3.4 Direct use value of water ........................................................................ 152 6.3.5 Non-consumptive use value of tourism .................................................. 153 6.3.6 Indirect use values................................................................................... 154 6.3.7 Non-use values........................................................................................ 157 University of Pretoria etd – Mmopelwa, G  (2006)  vi 6.3.8 Comparison of the value of Okavango Delta with some specific land uses in Botswana............................................................................................................. 159 6.3.9 The expected impact of water abstraction on total economic value ....... 161 6.4 Conclusions..................................................................................................... 162 References....................................................................................................................... 165 ANNEX........................................................................................................................... 191  List of Tables Table 1 Sectoral shares of GDP (%)  (Current prices)...................................................... 14 Table 2: Percentage contribution to total export and import by most important items (1994-2002)....................................................................................................................... 15 Table 3: Tourist arrivals from the top 10 countries .......................................................... 16 Table 4 Revenue by type of fee from national parks (1999- 2001) (Botswana Pula) ...... 17 Table 5: Tourism related share of GDP at market prices 1996/1997 ............................... 25 Table 6:Estimates of stocks of traded wild herbivores using non-citizen prices............ 103 Table 7: Estimates of compositional values of selected wild herbivores using citizen prices ............................................................................................................................... 105 Table 8: Identified growth forms and number of species in the Okavango Delta .......... 107 Table 9: Estimates of direct consumptive use values of selected wild herbivores during using non-citizen prices .................................................................................................. 110 Table 10: Estimates of direct use values using citizen prices......................................... 112 Table 11: Percentage of households harvesting vegetation resources in the Okavango Delta................................................................................................................................ 114 Table 12: Estimated direct use value of vegetation in 2003 ........................................... 120 Table 13: Conservative estimate of the value of vegetation in 2003.............................. 120 Table 14: Plants parts used as traditional medicine ........................................................ 122 Table 15: Estimates of direct use value of water in the Okavango Delta ....................... 125 Table 16: Direct use value of water using minimum tariff............................................. 125 Table 17: Honey production under optimal environmental conditions .......................... 127 Table 18: Honey production under sub-optimal environmental conditions ................... 127 Table 19: The Value of carbon sequestration ................................................................. 128 Table 20: The value of grazing for a Tswana breed and a cross breed between Tswana and Brahman cattle ......................................................................................................... 130 Table 21: Estimated grazing value for pure Tswana cattle breed................................... 130 Table 22: Milk production for Tswana breed and Jersey breed during 2003 ................. 132 Table 23: Milk production for a pure Tswana cattle breed during 2003 ........................ 132 Table 24: Road travel cost of tourists ............................................................................. 136 Table 25: Air travel costs of tourists............................................................................... 137 Table 26: Revenue by type of fees.................................................................................. 137 Table 27: A conservative estimate of road travel cost of tourists................................... 138 Table 28: Overall direct non-consumptive use value for tourism in 2003 ..................... 138 Table 29 Maximum households’ willingness to pay for the preservation of the Okavango Delta................................................................................................................................ 140 Table 30: Minimum households’ willingness to pay for the preservation of the Okavango Delta................................................................................................................................ 140 University of Pretoria etd – Mmopelwa, G  (2006)  vii Table 31: Maximum tourists’ willingness to pay for the preservation of the Okavango Delta................................................................................................................................ 142 Table 32: Minimum tourists’ willingness to pay for the preservation of the Okavango Delta................................................................................................................................ 143 Table 33: Summary of various economic values of the Okavango Delta....................... 146   List of figures  Figure 1: Location of Botswana........................................................................................ 11 Figure 2: Map of the Okavango Delta .............................................................................. 20 Figure 3: A Satellite image of the of the Okavango Delta during the wet season............ 21 Figure 4: Components of total economic value ................................................................ 86  

The value of the Okavango delta : a natural resource accounting approach

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The value of the Okavango delta : a natural resource accounting approach

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