PurposeThe study analyses the preference for forestry insurance amongst tree growers in the Ashanti Region of Ghana. Specifically, the authors examine the factors influencing the amount of forestry insurance and the choice for forestry insurance types.Design/methodology/approachA total of one hundred and seventy (170) tree growers were sampled for the study. The tobit model, multi-nomial regression and Kendall's tau were employed to analyse the factors affecting the amount for forestry insurance, the choice for forestry insurance types and the perils to forest quality, respectively.FindingsThe results of the study indicate that the incidence of bush fire and theft were the key perils that affect forest quality. In total, 52.94% of respondents preferred forest plantation fire insurance as named-peril insurance whereas 70.59% preferred a combination of forest plantation fire, windstorm and consequential loss insurance as multi-peril insurance. The majority (89.4%) of the respondents were willing to pay an amount between Ghc 10.00–49.00 (US$ 2–8) per stand. On the one hand, results of the tobit model reveal age, income, experience in forest management, land ownership and the previous occurrence of fire as the factors affecting the amount for forestry insurance. On the other hand, the multi-nomial results indicate the previous occurrence of fire, gender, forest size, income and risk aversion significantly influenced the choice for forestry insurance types, namely named peril and multi-peril.Originality/valueSeveral studies exist for forestry insurance in the developed countries. However, in West Africa specifically, Ghana, studies on forestry insurance appear to be non-existent. Above and beyond, this study, therefore, adds to the paucity of research on forestry insurance in Ghana and serves as a framework for agricultural insurance institutions such as the Ghana Agricultural Insurance Pool (GAIP) and World cover and other agricultural insurance institutions globally.
This paper discusses how rosewood as a common-pool resource is managed and utilized at the local community level in the wake of aggravated exploitation of the resource for export to feed external markets. Non-probability sampling technique coupled with focus group discussion was used to collect primary data from two administrative districts in the transitional zone between the savannah and high forest in Ghana. In all, researchers interacted with 96 respondents in a survey and 77 participants in focus group discussions in 6 communities. The results indicate that the governance structure and management strategy for the sustainable use of rosewood and other forest commons are ineffective in the studied communities. Illegal rosewood harvesting thrived due to weak institutional structures, poor community knowledge of the value of rosewood logs in the international market and poor public knowledge about a ban on the harvesting and export of rosewood. Sustainable management and utilization of rosewood and other forest commons on village lands (lands outsider protected areas) could be improved if local communities are empowered and given technical support to manage forest resources on their lands. The conduct of natural capital accounting in forest resources and communicating the result to local communities could help residents appreciate the true value of forest resources and probably aspire for a greater quota of benefits. With a better understanding of the value of a forest, residents may be motivated to protect it from unsustainable use.
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