Application of natural resource accounting to the forest resources of Ethiopia: case of Shashemene forest

Course ID
Ethiopian Economics Association (EEA)
Anteneh Kebede

We are living a dynamic world, where the change in the stock of natural resources is increasingly affecting the way people of the world are living. Although the economic activity of the homosapiens species is heavily dependent on the surrounding environment, it is only recently that the contribution of the environment to the well-being of society started to get serious consideration. Even the system of national accounts (SNA), which has been used to generate indicators of welfare in a nation / ignores this fact and does not properly treat the value of natural resources.
One of the natural resources that do not receive proper treatment in SNA of Ethiopia and many other countries is the forest resource. By taking the case study of Shashemane forest in Ethiopia, this paper tries to show which part of forest resources are missing from the national accounts, what would their magnitude look like, and how could they be integrated into the SNA framework. For this purpose the amenity, tangible non-timber forest products, timber and depreciation values of the forest are treated
The total value of the forest (for 2004/05) which only considers the above three components is estimated to be 249, 172, 132 ETB. Out of this, timber value has a percentage share of 51 while amenity and tangible NTFPs take the remaining 5 and 44 percent. Since it is a plantation forest, we found appreciation rather than depreciation in this forest and the value of appreciation is found to be 3,245,524 ETB.
In the CVM survey, age, income, fuel wood benefit, and acquaintance are found to be significant determinants of WTP for amenity benefits.
The study also tries to see the interaction between the forest and the surrounding community and results show that the lower 10 percent income group of the community depend more in the tangible NTFPs of the forest than the upper 10 percent income group

Corporate Author: Getnet Alemu and Edilegnaw Wale (Editor) & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Publisher: Ethiopian Economic Association (EEA)
ISBN/ISSN: 978-99944-54-07-5
Primary Descriptors: system of national accounts

Secondary Descriptor: forest, amenity value

Geographic Descriptors: Ethiopia, Shashemene
Cataloge Date: 02/27/2013
Broad Subject heading: Natural resource
Call Number: 330.963 PRO 2009
Serial Key Title: Proceedings of the Fifth International Conference on the Ethiopian Economy
Publication catagory: International Conference
Content type: EEA Publication
Volume: III
Publication date: 2013-12-27 23:09:00
Forum or Discussion date: 2013-02-27 15:02:15
Place of publication: Addis Ababa, Ethiopia
Type of material: Book
Current frequency: Annualy
Author: Anteneh Kebede

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