Deforestation in Ghana The Role of Incentives

Abstract

The fast rate at which the nation's forests are being depleted as a result of unsustainable land-use practices adopted by economic agents, has become a serious concern to policy-makers. Even though several afforestation and reforestation schemes are being undertaking by the government and private individuals, they seem inadequate compared to the rate of destruction. A combination of econometric analysis, a survey, and tabular representation and analyses have been used to analyse the motivation of such economic agents for causing deforestation. In spite of the paucity of data, the approach adopted in this study helps to confirm the claim that; inefficient agricultural practices, indiscriminate logging, woodfuel consumption, bushfires and mining, fuelled by the perverse incentive mechanisms within these sectors, are the major contributory factors to deforestation in Ghana. Such incentives among others include; lack of subsidies, higher input costs, rent-seeking activity and lack of manpower in the Forestry Sector. The study gives recommendations to encourage the processing of timber as well as the restoration of subsidies as means of checking deforestation. It also recommends that since poverty encourages high patronage of firewood and charcoal as against energy forms such as gas and electricity, the government should subsidise the fixed cost components of the latter. Even though deforestation is a multi-faceted issue with a hydra of causes, it is hoped that if the policy directives contained in this study, are critically considered, and adhered to by policy-makers, posterity stands the chance of enjoying a better environment