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The Economic Evaluation of Dryland Ecosystem Services in the South African Kgalagadi Area and Implications for PES Involving the Khomani San

Johane Dikgang and Edwin Muchapondwa
Authors registered in the RePEc Author Service: Edwin Muchapondwa () and Johane Dikgang

No 384, Working Papers from Economic Research Southern Africa

Abstract: The economic importance of the dryland ecosystem services in the Kgalagadi area is generally unknown, as is the distribution of benefits from use of the ecosystem services. This study seeks to value ecosystem services in the Kgalagadi area by applying the Choice Experiment technique and thereafter assess the potential for ecosystem services to contribute to the Khomani San livelihoods through a payment for ecosystem services (PES) scheme. The values placed on dryland ecosystem services by tourists are estimated using a Conditional Logit model, Random Parameter Logit model and a Random Parameter Logit model with interactions. The park visitors prefer getting more pristine recreational opportunities, increased chances of seeing predators and show disapproval of granting more access inside the Kgalagadi Transfrontier Park to local communities. This scenario shows that there is a possibility to craft a PES scheme where park visitors could compensate the local communities to accept a restriction of resource use in the Kgalagadi area.

Keywords: choice experiment; conditional logit; ecosystem services; Khomani San; random parameter logit (search for similar items in EconPapers)
Pages: 27 pages
Date: 2013
New Economics Papers: this item is included in nep-afr, nep-dcm and nep-env
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