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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

29 October 2013
Publication Type: Working Paper
JEL Code: Q5, Q52, Q57

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.

Series title: Working Paper 384
1 October 2013
Journal: Journal of Environmental Economics and Policy, 2014
12 May 2014
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