ECONOMIC VALUATION OF FOREST ECOSYSTEM SERVICES IN SHASHA AND OBA HILL FOREST RESERVES IN OSUN STATE, NIGERIA

Abstract

The study assessed the benefits derived from ecosystem services, the preferences and the willingness to pay (WTP) for ecosystem services and the factors that influences the WTP for ecosystem services in Oba Hill and Shasha forest reserves in Osun State. A pre-tested semi-structured questionnaire/Interview guide was used to collect the data. A total number of 200 respondents were selected randomly in the forest communities surrounding the forest reserves. Descriptive statistics in forms of charts, percentages, frequency, mean analysis and multiple responses were used to describe the socio-economic characteristics of the respondents and the benefits derived from the ecosystem services. Preferences, Willingness-to-Pay (WTP) and the factors that influenced WTP were assessed using Choice experiment. D-Optimal design with a D-efficiency of 99.9% was developed for the choice experiment using R software package. A practical set of 9 choice sets with two product profiles and a status quo alternative were obtained. A sample of 1800 observations obtained from 200 respondents who participated in a choice experiment were used in all estimations. Random Parameters Mixed Multinomial Logit (MIXL) and Generalized Multinomial Logit (G-MNL) models were used to model the preferences of the respondents for ecosystem services, estimate the willingness to pay (WTP) and the factors that influence the WTP of an individual for the attributes of forest ecosystems services. The preferences for different attributes of forest ecosystem services varied across the sampled households. Wildlife loss, soil fertility and cost attributes were significant at 0.1% significance level (p<0.001). Mean WTP estimate of a household for increase in soil fertility, reduction of wildlife loss, multiples of important tree species were ₦860 per month, ₦761 per month and ₦39.95 per month respectively. Respondents were not willing to pay for the mitigation of weather fluctuation. Regression results revealed that, WTP of the respondents in the study area was mainly influenced by the farming households. Therefore, this study concludes that the preferences and WTP for the ecosystem services in the study area was partly influenced by the socio-economic characteristics of the respondents.