ECONOMIC VALUATION OF BAMBOO RESTORATION IN BULE DISTRICT: A DOUBLE BOUNDED DICHOTOMOUS CONTINGENT VALUATION MODEL

ABSTRACT Worldwide human activities are the driving force for land degradation; these difficulties will worsen without immediate remedial action. This pressing global issue affects mankind, especially rural communities. The indicators for land degradation are mostly reduction in benefits derived from land. Bamboo is a grass type with a very large woody stem. Bamboo forests are important both for land restoration and socio-economic value. This study analyzed the economic valuation of bamboo restoration in Bule district of southern Ethiopia based on a cross sectional survey of 395 sample households selected from the study district. The data collected were analyzed using a number of descriptive and econometric tools. The descriptive result shows that farmers perceived bamboo degradation decrease livelihood income for sample respondents, expansion of land for agricultural purpose, decline supply of timber products, decrease supply of firewood and charcoal, increase loss of fencing material, increase time for firewood collection, acerbate flooding and storks, decrease soil fertility due to erosion, increase environmental responsibility, increase temperature, increase biodiversity loss and destruction of plants and wild animals, reduce ground water of the sample respondents perceived that, increase vulnerability in global warming, increase in demand for cultural instruments, decrease availability of drinking water and reduce ground water. Applying a double bounded contingent valuation method, the study found that WTP for restoring bamboo natural forest is significantly influenced by bid level, educational level of household head, farm size, membership of cooperative, understanding towards bamboo restoration, tropical livestock unit, distance of farm plot to bamboo natural forests and dependency ratio. Results also indicate that mean WTC for bamboo restoration is 74.06 days/annum/household. In conclusion, CV can be used as an indicative to give some measure of labour contribution for bamboo restoration. Research result seems to indicate the Bule district need bamboo natural forest restoration and expect some positive measure of welfare change.