The impacts of gold mining on the welfare of local farmers in Asutifi-North District in Ghana: A quantitative and multi-dimensional approach

Adator Stephanie Worlanyo, Sikpaam Issaka Alhassan and Li Jiangfeng

Resources Policy, 2022, vol. 75, issue C

Abstract: Farming is the major economic activity of the people in the Asutifi-North District of Ghana however, farmers in this District are mainly characterized by small-farm holdings of less than 3 acres per farmer as a result of shrinking agricultural land due to increasing small and large-scale mining in the District. Currently, mining has become the major competitor to farming in terms of land-use conversion within the District. Though mining activities have led to several land-use conversions, little or no studies have been done in that regard. Studies over the years have focused on the environmental impacts of mining with less emphasis on the impacts of mining on farmers' welfare. This paper examines the factors influencing farmers' participation in land-use conversion for mining, its impacts on farmers' welfare, and the criteria of compensation given to affected farmers by the large-scale mine. Multi-staged sampling comprising both purposive and random sampling techniques was employed to gather data from 300 farmers in 5 mining communities in the district. The data obtained were analyzed using descriptive statistics and the Heckman two-stage model involving the Probit and OLS equations. Results indicate that variables such as farmer's age, sex, distance from household to farm, farmer's experience, total land size, and distance to the nearest access road were factors that influenced farmers' decision to participate in land-use conversion. Also, participants of land-use conversion had an annual income of (GH₵ 189)-$31.68 more than the non-participants however, their incomes are not sustainable hence compelling them into illegal mining. This paper has a guiding significance for policy decision making for gold mining in Ghana.

Keywords: Gold mining; Impacts; Welfare; Compensation; Probit; Heckman (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:75:y:2022:i:c:s0301420721004669

DOI: 10.1016/j.resourpol.2021.102458

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