Protected Area Management and Local Benefits — A case study from Madagascar

Abstract

This paper analyzes the comparative advantage of alternative forest management policies taking into account the subjective welfare judgment of individual rural households. The methodological approach chosen for this study is a financial farm household analysis combining both, economic data at the household level and natural science data of forest resources obtained in a research area in the Northwest of Madagascar. This interdisciplinary approach takes account of the interdependence between ecosystem dynamics and economic decision-making processes. By applying a poverty index, it is possible to make a further distinction between groups of rural households that are inherently different with regard to their economic potential and activities. The results of this study demonstrate that, due to their livelihood strategies, it is especially the poorest households that suffer most from a strict conservation approach, while better-off households would benefit more due to an improved provision of indirect forest services, particularly watershed protection. We also analyze the potential for compensating opportunity costs of restricted forest utilization through international transfer payments and the potential of implementing economic incentives for afforestation at the household level. In this context, we extend our analysis beyond mere economic aspects of resource management and provide further information how alternative management strategies can meet the increasing direct demand on forest resources, while also achieving the objective of biodiversity conservation. Lastly, the potential of forest resources to contribute to local and regional economic development in developing countries is discussed.