The Market Price Method and Economic Valuation of Biodiversity in Bauchi State, Nigeria

Abstract

This study adopts the survey design to examine the feasibility and reliability of value estimatesof the Market Price Method by applying it to Gubi Dam area in Bauchi State, Nigeria. The theoretical bases of economic valuation methods were also examined to clarify their premises, rationales and conditions under which they would be valid. Data were collected through interviews and focus group discussion conducted with the village heads, fishermen, fish sellers and consumers within Bauchi metropolis. From the data collected, about 18,140kg
of fishes are harvested at the Gubi dam annually, generating N4,279,000,000 and N7,273,000 from wholesale and retail activities annually respectively. Also, 69,200kg of vegetable were harvested at the Gubi dam irrigation farm annually, generating N3,248,000 and N5,202,000 from wholesale and retail activities
annually respectively. Among other things, the findings reveale that property rights related to ecosystems and their services are often not clearly defined, if property rights for natural resources are not clearly defined, they may be overused, because there is no incentive to conserve them. Using reasonable assumptions,
the research concludes that the method proved to be applicable in the study area but needs to be improved upon, to make the value estimates credible and reliable in developing economies. Finally, it is recommended among things that the discounting of economic benefits should be made to reflect time value of money and that provisions for outgoings should be made to reflect elements of market failure in the method.