Stakeholder Incentives in Participatory Forest Management: A Manual for Economic Analysis

This manual provides practical methodological guidance for the economic analysis of stakeholder incentives in participatory forest management (PFM) situations, it also aims to make economics more accessible to a wider audience promoting PFM.

List of contents

Foreword viii; Acknowledgements ix; Figures x; Tables xi; Boxes xiii; Examples xiv; Abbreviations and acronyms xvi; PART I INTRODUCTION AND CONCEPTS; 1 INTRODUCTION 3; 1.1 Why is this manual needed? 3; 1.2 What is economic stakeholder analysis? 4; 1.3 Who is the manual for? 6; 1.4 Why the emphasis on local forest users? 8; 1.5 How can ESA help? 9; 1.6 When is an ESA-type study not necessary? 10; 1.7 Caveats and limitations 11; 1.8 Structure of the manual 13; 2 ECONOMIC CONCEPTS FOR PARTICIPATORY FOREST MANAGEMENT 15; 2.1 Introduction 15; 2.2 Overview of the economic characteristics of forestry 16; 2.3 The household economy - the basic unit of analysis 18; 2.4 Forest values and their classification 21; 2.5 The basis of economic value 24; 2.6 Opportunity costs and trade-offs 29; 2.7 Basic measures of economic value 30; 2.8 Analysis at the margin and comparing costs and benefits 33; 2.9 Nominal and real prices 38; 2.10 Accounting for time: discounting 38; 2.11 Market and policy failure and the economic problems of PFM 41; PART II THE ECONOMIC STAKEHOLDER ANALYSIS TOOLBOX; 3 IDENTIFICATION AND CHARACTERIZATION OF THE STAKEHOLDERS 49; 3.1 Introducing ESA stage 1 49; 3.2 The ESA stage 1 toolbox 51; Identify, prioritize and classify the stakeholders (ESA1.1) 51; Identify the objectives and livelihood alternatives of each subgroup (ESA1.2) 55; Analyse relationships between stakeholder groups (ESA1.3) 59; 3.3 Summing up ESA stage 1 63; 4 UNDERSTANDING THE DECISION-MAKING CONTEXT AND THE; ROLE OF ECONOMICS 64; 4.1 Introducing ESA stage 2 64; 4.2 The ESA stage 2 toolbox 65; Understand the decision-making context or problem (ESA2.1) 65; List and prioritize the alternative courses of action (ESA2.2) 66; Prioritize the decision-making criteria of stakeholder groups (ESA2.3) 66; Identify the 'limiting' factor(s) of production (ESA2.4) 67; 4.3 Summing up ESA stage 2 69; 5 IDENTIFICATION AND PHYSICAL QUANTIFICATION OF COSTS; AND BENEFITS 70; 5.1 Introducing ESA stage 3 70; 5.2 The ESA stage 3 toolbox 72; Identify the benefits and costs of each course of action (ESA3.1) 72; Prioritize benefits and costs (ESA3.2) 76; Estimate production and input levels (ESA3.3) 78; Triangulate production levels (ESA3.4) 92; Check if production is sustainable (ESA3.5) 94; 5.3 Summing up ESA stage 3 96; 6 VALUATION OF COSTS AND BENEFITS 98; 6.1 Introducing ESA stage 4 98; 6.2 Using the ESA stage 4 tools 100; Prioritize benefits and decide on valuation methods (ESA4.1) 100; Valuing marketed products (ESA4.2) 101; Valuing home-consumption (ESA4.3) 109; Rank or value the most important on-site non-market benefits (ESA4.4) 119; Value important off-site or downstream benefits (ESA4.5) 125; Compare ranking of quantified and non-quantified benefits (ESA4.6) 126; Valuation of costs (ESA4.7) 127; 6.3 Summing up ESA stage 4 134; 7 ECONOMIC COMPARISON OF THE DECISION-MAKING ALTERNATIVES 136; 7.1 Introducing ESA stage 5 136; 7.2 Using the ESA stage 5 tools 137; Budgeting methods (ESA5.1) 137; Discounted cost-benefit analysis (CBA) methods (ESA5.2) 144; Dealing with risk and uncertainty (ESA5.3) 155; Other economic decision-making criteria (ESA5.4) 161; 7.3 Summing up ESA stage 5 165; 8 PARTICIPATORY ANALYSIS AND MONITORING 166; 8.1 Introducing ESA stage 6 166; 8.2 Returning the data to the stakeholders 167; 8.3 Participatory monitoring and evaluation (PM & E) 173; 8.4 Summing up ESA stage 6 179; 9 SUMMARY GUIDANCE POINTS 180; 9.1 Some concluding remarks 180; 9.2 General guidance points 180; 9.3 Guidance points on ESA stages 181; Appendix 1 Annotated sources of further guidance 184; Appendix 2 Qualitative economic analysis: is an ESA study necessary? 189; Appendix 3 Tables of discount and annuity factors 191; Appendix 4 Comparison of PRA and survey methods in a Zimbabwean; case study 193; Appendix 5 Valuation methods from the national or social perspective 197; Appendix 6 Market feasibility analysis 211; Glossary of economic terms in the context of forest resource economics 217; References 221; Index 229

About the author

Michael Richards is a research associate of the Overseas Development Institute with 25 years experience as an economist working on rural development and tropical forestry issues. Jonathan Davies is an agricultural and natural resources economist with broad experience in Africa and Latin America.

Product details

• Authors: Jonathan Davies, Michael Richards, Michael P. Richards, Gil Yaron
• Publisher: Practical Action Publishing
• Languages: English
• Product format: Paperback / Softback
• Released: 31.12.2022
• EAN: 9781853395598
• ISBN: 978-1-85339-559-8
• No. of pages: 256
• Dimensions: 182 mm x 244 mm x 15 mm
• Weight: 517 g
• Subjects: Guides > Law, job, finance; Natural sciences, medicine, IT, technology > Biology > Agriculture, horticulture; forestry, fishing, food; Social sciences, law, business > Business > Economics