Abstract

Okojie LO, Abiola MO and Sanusi RA

Payments for environmental services (PES) especially for agro-forestry based green growth practices are considered a potential drive towards achieving a green economy in developing countries. This paper investigates the economic valuation of benefits derivable from agro-forestry based green growth practices in Ogun state, Nigeria. The environmental functions of the agro-forestry taungya sites valued were carbon sequestration, clean air, reduction of downstream flooding, and maintenance of soil fertility. The multi-stage sampling procedure was applied. The methodology involved descriptive statistics, contingency valuation method and the binary choice logit model. The proportion of respondents willing to pay for environmental service benefits resulting from green growth provided by taungya Agro Forestry (AF) system was much higher than those that were not. The log of bid offered had a negative and significant effect (P< 0.05) on the likelihood of the bid acceptance in the Willingness To Pay (WTP) valuation. This agrees with economic theory of demand with respect to the higher the price, the lower the demand. Income had the expected positive and significant effect (P<0.10) on the WTP for the environmental benefits of AF. The contact with extension agents had a positive and significant (P<0.01) relationship with the WTP for the environmental benefits of AF in the study area. The need to involve the international community in cost sharing for promotion of green growth through AF for increased benefits to all was highly embraced as the variable was positive and significant (P<0.05). Policy formulations involving moderate pricing in the payment for environmental services, enhanced income to the populace and improvement in extension contact in the study area need to be put in place. Dialogues on cost sharing with the international community on the burden of promoting agro-forestry practices, essential to green growth is imperative. These will go a long way in enhancing the derivable environmental benefits of agro forestry.