Stakeholder Incentives in Participatory Forest Management

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