Igad livestock Policy Initiative

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Total Economic Benefits

The Total Economic Value (TEV) for the natural resources consists of two broad categories of values: use values and non-use values (Vito Cistulli, 1996). Use values are those benefits that are derived from actual use of natural resources (e.g. rangelands products), whereas "non-use” values refer to those benefits which do not imply contact between the consumer and the good that people do not need to use, but they are willing to pay for (e.g. ecosystem services).

According to many authors, "use values" are divided into Primary Values (PV) or marketed goods and services and Secondary Value (SV) or unmarketable goods and services. In addition to those values, environmental economists introduced an "option value", which is the value placed on environmental assets by those people who want to secure the use of good or service in the future i.e. use values include ecological benefits.

Non-Use values are benefits that are not enjoyed by the individual expressing the value but by future individuals. It includes "existence value"', which has been described as follows: even if the individual doesn't consume the services, they may still be concerned about the quality or existence of the asset (Winpenny 1991). For example they may derive satisfaction from the pure fact that the asset is available for other people living now or in the future (Satisfaction that the resource is there), e.g. value of range rehabilitation to present generations in providing sustainable pastoralism for future generations. Another non-use value is the more altruistic "bequest value", for example, the desire to preserve forests for the enjoyment of other people now or in the future. Table 11 estimates the Total Economic Value (TEV) of rangeland rehabilitation by the intervention.

Table 11: Use values of range rehabilitation by the intervention (2005-2007)


PV (direct)

SV (indirect)




Conservation of dry lands environment

Delineation of the live stock routes


**non-wood forest products

livestock products

Strengthening pastoral communities

Social Services (Schools)

Building capacity

Amendment of Existing laws and Local Orders

Social stability (farmers and pastoralists )


Social stability (farmers)

Range rehabilitation (fire lines)

Save forage

Range protection

* Grasses and fodder trees and shrubs, Increase of average production of air dry forage per unit area, can be calculated from the land became part of the route.

** Non wood forest products include gum Arabic, fruits of the forests trees.

Due to lack of data and reliable information, only a partial TEV could be estimated. Hence, in this study, the calculated TEV from one side neglects values as far as option value and non-use values are concerned (i.e. existence and bequest-values). Also some direct and indirect use values have no statistics available and no reasonable estimation can be made, so it is difficult to be incorporated within the TEV. However, the environmental impacts of the intervention can be summarized as follows:

  • Enhancement of Agricultural Systems Production (plants and animals):

Rangelands are increasingly viewed as land banks for further agriculture expansion. They provide a restorative service to agriculture which is most clearly evident in shifting cultivation, in replenishing degraded land, recycling nutrients, maintaining and rehabilitating soil structure, contributing to the water cycle, regulation of water, protecting watershed and providing shade and shelter.

Rangeland resources contribute substantially to the income and subsistence of a large sector of population who are either pastoralists or agro-pastoralists. It provides an important feed resource and it supplies about 80 percent of total feed requirement of national herd, as well as providing habitat for wildlife. Accordingly, the intervention managed to preserve lands for present and future generations, secure pastoralists rights and carry range rehabilitation programmes that will be to the benefit of the resource and animals.

  • Effect of rangelands on wind speed and rains intensity:

Rangelands have great influence on wind speed as they break the force of the air currents and moderate wind speeds, thus offering good protection against cold and hot dry winds. Range plants with their different heights and shapes provide rough surface that slow the movement of wind and reduce its velocity. Furthermore, they absorb the kinetic energies of raindrops and smooth their infiltration in the soil.

  • Carbon Sequestration:

One of the important ecological roles of rangelands is the provision of carbon sinks. As large tracts of land will be subjected to seeding with diversified species of range plants, Carbon density in rangelands will increase annually due to natural regeneration and accumulation in vegetation (biomass + root). Carbon can also be sequestered by soil due to litter fall and decomposition.

  • Environmental awareness:

The workshops conducted created environmental awareness among the different resource users to the extent that local communities are taking part in the control of wild fires and the conservation of environment.

  • Social:

The amendments of laws and development of local orders governing use in addition to compensation against the loss of cropping land helped to secure the rights of different resource users which are reflected in proper use of the resource and reduction of conflicts.

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