Abstract:
The paper estimates and compares the level of Reducing Emissions from
Deforestation and Degradation (REDD+) payments required to compensate for the opportunity
costs (OCs) of stopping the conversion of montane forest and miombo woodlands into
cropland in two agro-ecological zones in Morogoro Region in Tanzania. Data collected from
250 households were used for OC estimation. REDD+ payment was estimated as the net
present value (NPV) of agricultural rent and forest rent during land clearing, minus net returns
from sustainable wood harvest, divided by the corresponding reduction in carbon stock. The
median compensation required to protect the current carbon stock in the two vegetation types
ranged from USD 1 tCO2e−1 for the montane forest to USD 39 tCO2e−1 for the degraded
miombo woodlands, of which up to 70 % and 16 %, respectively, were for compensating OCs
from forest rent during land clearing. The figures were significantly higher when the cost of
farmers’ own labor was not taken into account in NPV calculations. The results also highlighted
that incentives in the form of sustainable harvests could offset up to 55 % of the total
median OC to protect the montane forest and up to 45 % to protect the miombo woodlands,
depending on the wage rates. The findings suggest that given the possible factors that can
potentially affect estimates of REDD+ payments, avoiding deforestation of the montane forest
would be feasible under the REDD+ scheme. However, implementation of the policy in
villages around the miombo area would require very high compensation levels.
