DEFORESTATION IN GHANA THE ROLE OF INCENTIVES BY FRANCIS KE&ME AFRIYIE A THESIS SUBMITTED TO THE DEPARTMENT OF ECONOMICS, UNIVERSITY OF GHANA LEGON, IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE MASTER OF PHILOSOPHY DEGREE IN ECONOMICS NOVEMBER 1995. University of Ghana http://ugspace.ug.edu.gh 847480 University of Ghana http://ugspace.ug.edu.gh I, FRANCIS KWAME AFRIYIE, hereby declare that this thesis is entirely my own brain-child and that no part of it has ever been presented for another degree elsewhere. DECLARATION FRANCIS KWAME AFRIYIE Dr. K.A. TUTU CO-SUPERVISOR University of Ghana http://ugspace.ug.edu.gh DEDICATION DEDICATED TO MY MUM, DAD, BROTHERS, AND SISTERS. University of Ghana http://ugspace.ug.edu.gh ACKNOWLEDGEMENTS This work has had the benefit of many kinds of friendly help, intellectual as well as material. My thanks are due to the staff of the department of Economics, University of Ghana-Legon, for their hospitality throughout my career, especially my supervisors Doctors K. A. Tutu and H.E.Jackson, whose immense contributions and criticisms helped me to come out with this work. It is more difficult for me to detail my debts to the individual colleagues and workers with whom I have had the pleasure of discussing some of the chapters of this work. However, it should be pointed out that, Mr. George Ashia of the Forestry Department Mr. Ntim of the Lands Commission and Mr.David Amoako, the Assistant Production Manager of Akuaba Furniture Works, need special thanks for their co-orporation, when I called on them at their offices for data. In addition, I express my thanks also to Mr. Yaw Offei of Atlas Engineering Company limited for his priceless support throughout my career. I also thank Mr. & Mrs Brew, Ms. Jane Wiafe, Ms. Suizzy Abaidoo, Mr. Kwame Asamoah, Mr. Owusu Boateng and Madam Alice Danquah, whose inspiration and encouragements urged me on to complete this work on schedule. My thanks also go to the AERC, who apart from the exposure which I happened to benefit from them during the JFE in Nairobi (Kenya), greatly supplemented my efforts with funds (a grant), to enable me come out with this work. Finally, my thanks are due to the Almighty God, whose protection saw me through thick and thin to come out with this work. In spite of some shortcomings one may identify from this study, the responsibility for mistakes of course lies entirely with November 199 5 F.K. Afriyie University of Ghana http://ugspace.ug.edu.gh TABLE OF CONTENTS Page ................................... . . . . . (i) . . . . ............. . . . . . . . . . (ii) . . , . , . . .......................... (i i i ) . . ............... . . . . . . . . . . (iv) ................. - ..................... (vi) .......... (vii) CHAPTER ONE: INTRODUCTION . . . . . . . . . . . . , , 1 1.0 BACKGROUND . . . . . . . . . . . . . . . . . . . . . 1 1.1 STATEMENT OF THE P R O B L E M ...................... 3 1.2 RATIONALE AND OBJECTIVES FOR THE S T U D Y .......... . 5 1.3 HYPOTHESIS OF THE STUDY ............. 5 1.4 METHODOLOGY . . . . . . . . . . . . . . . . . . . . . 6 1.5 CHAPTER OUTLINE ........... . . . . . . . . . . . . . 7 DECLARATION , . . DEDICATION , . . ACKNOWLEDGEMENTS TABLE OF CONTENTS LIST OF TABLES . ABSTRACT . . . . CHAPTER TWO: LITERATURE REVIEW . . . . . . . . . . . 2.0 INTRODUCTION ............... .. . . 2.1 PERSPECTIVE OF DEVELOPING COUNTRIES . . . . 2.2 LOCAL PERSPECTIVE (SPECIFIC CASES ON GHANA) 2.3 CONSEQUENCES OF DEFORESTATION . . . . . . . 2.4 SUMMARY OF THE CHAPTER . . . . ........... 28 CHAPTER THREE: AGRICULTURAL CROP PRACTICES IN GHANA 3.0 3.1 FORMS OF LAND USE IN GHANA; AGRICULTURE ............... . 1 , . 1 . , 1 , 3.2 FARMING SYSTEMS . . . . . . . . . . . GUINEA SAVANNA AND THE FOREST ZONES . BUSH FALLOW SYSTEM AND HOW IT LEADS TO DEFORESTATION ........................ COCOA PRODUCTION . . . . . . . . . . . COCOA PRODUCTION AND DEFORESTATION . . ECONOMIC REASONS OF DEFORESTATION ARISING FROM CROPLAND EXPANSION . . . DESCRIPTION OF VARIABLES - COCOA AND REAL PRICE . .......................... MODEL TO BE E S T I M A T E D ........ .. EMPIRICAL RESULTS AND ESTIMATED HECTARES OF THROUGH AGRICULTURE , SUMMARY OF THE CHAPTER . . . 3.1.7 9 10 DISCUSSIONS LAND LOST io 36 37 37 38 39 43 47 48 48 49 50 55 55 iv University of Ghana http://ugspace.ug.edu.gh CHAPTER FOUR: LOGGING, WOODFUEL CONSUMPTION, BUSHFIRES AND MINING . . . . . . . . . . . . . . . . . . . . 57 4.1 LOGGING . .......... 57 4.1.1 HISTORICAL AND PRESENT-DAY CONCESSION ALLOCATION PROCESS . . . . . . . . . . . . . 57 4.1.2 ROYALTIES ............ . 62 4.1.3 EVALUATION OF GHANA'S TIMBER TRADE . . . . 64 4.1.4 LOGGING PROCESSES AND DEFORESTATION . . . . 67 4.1.5 THE LOG EXPORT MODEL .......... 68 4.1.6 DESCRIPTION OF VARIABLES - LOG EXPORT AND REAL VALUE OF LOGS . . . . . . . 69 4.1.7 EMPIRICAL RESULTS AND DISCUSSIONS . . . 69 4.1.8 EVIDENCE OF TIMBER OVER-EXPLOITATION . . . . 71 4.1.9 REFORESTATION AND AFFORESTATION SCHEMES . . . . . . . . . . 72 4.1.10 COMPARISON OF THE VALUE OF A CUBIC METRE OF LOG-EXPORT WITH THE VALUE OF THE SAME CUBIC METRE OF LOG PROCESSED . 77 4.1.11 MERITS FROM PROCESSING ............. . . . 80 4.2 WOODFUEL CONSUMPTION AND DEFORESTATION . . . . . . 81 4.2.1 FIREWOOD . . . . . . . . . . . . . . . . . . 81 4.2.2 CHARCOAL 83 4.2.3 ANALYSIS OF RELATIVE COST OF USING ALTERNATIVE ENERGY SOURCES IN GHANA . . . . 86 4.2.3 ESTIMATED WOODFUEL CONSUMPTION ........ . . 92 4.3 BUSHFIRES........................................... 93 4.3.1 RECORDS OF SOME FIRE OUTBREAKS . . . . . . . 94 4.4 M I N I N G ....................... ..................... 9 5 4.4.1 MINING AND DEFORESTATION ................... 96 4.4.2 ECONOMIC IMPLICATIONS ..................... 96 4.5 SUMMARY OF C H A P T E R .............................. . 98 CHAPTER FIVE: THE NATURE OF INCENTIVES . . . . . . . . . . . 100 5.0 INTRODUCTION ............. 100 5.1 AGRICULTURAL SE C T O R ................... 100 5.2 LOGGING...................................... 104 5.3 THE ENERGY SECTOR (WOODFUEL CONSUMPTION) . . . . . 106 5.4 BUSHFIRES AND MINING OPERATIONS . . . . . . . . . . 107 5.5 SUMMARY OF THE C H A P T E R ..............................109 CHAPTER SIX: FINDINGS, POLICY DIRECTIVES, SUMMARY AND CONCLUSIONS . . . . . . . . . . . . . . . . . . 110 6.1 F I N D I N G S ............ 110 6.2 POLICY RECOMMENDATIONS ................. Ill 6.3 SUMMARY AND CONCLUSIONS . . 11? A P P E N D I X .................................. H 4 BIBLIOGRAPHY ......... iiq University of Ghana http://ugspace.ug.edu.gh LIST OF TABLES Table 3.1: Forms of Landuse as at 1972 . . . . . . . . . . . 36 Table 3.2: Forests lost to arable farming by vegetational zones and year in sg. km. .............. .. . 43 Table 3.3: Earnings by export sectors, 1986-1992 (US $m) . . 44 Table 3.4: Average Yield per hectare of cocoa in the major producing countries (1989/91). . ........ . . . 46 Table 4.1: Concessions granted between 1991 and 1994 by the Forestry Department . 62 Table 4.2: Export of Timber, Volume and Value . . . . . . . 65 Table 4.3: Estimated Resource Life based on 1989 felling rate. ............. . . . . . . . . . . . . . . . 72 Table 4.4 Major fuel for households (in percentages) in some urban centres in Ghana . . . . . . . . . 82 Table 4.5: Inflow of Charcoal through the Kumasi artery. . . 84 Table 4,6: Firewood consumption of some selected households . . . . ................. . . . . . 89 Table 4.7: Gas consumption of some selected households . . 90 Table 4.8: Charcoal consumption of some selected households . . . . . . . . . . . ............. , 90 Table 4.9: Electricity consumption of some households . . . 91 Table 4.10 Consumption of kerosine as a form of energy by some selected households . ............... . 92 Table 4.11 Incidence of Bushfires in Ghana - November 1984 to May 1 9 8 5 ...................................... 94 Table 4.12 Mineral production, 1986-1992 . . . . . . . . . . 97 Table 5.1: Fertilizer Prices 1983-1993 (cedis/50kg) . . . . 101 University of Ghana http://ugspace.ug.edu.gh 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. vii University of Ghana http://ugspace.ug.edu.gh CHAPTER ONE INTRODUCTION 1.0 BACKGROUND Deforestation is the clearing of the forests and the conversion of the land to nonforest uses (WB 1991). Norman Myers (1992) attributed deforestation to population growth and other factors. Deforestation generally results from inefficient agricultural practices, woodfuel consumption (firewood and charcoal), indiscriminate logging, bushfires and mining activities. Ghana is no exception to the continuous environmental degradation as a result of deforestation fuelled by her rapid expansion of farmlands into the forest zone among other factors. The upsurge of cash crop production which occurred in Ghana around the middle of the nineteenth century concentrated on cash crops including oil palm, coffee, and cocoa. Of these, cocoa was the most significant in terms of conversion of natural forest lands (Tutu et al, 1994). This rapid rate of forest destruction during the colonial era, led the colonial administrators to consider the need for a legislation to conserve part of Ghana's forests. The Department of Forestry was therefore established in 1909 even though a bill that sought to propose the establishment of forest reserves was drafted in 1911. In 1927, the Forest Ordinance was passed which gave the colonial government authority to establish forest reserves irrespective of opposition from local people (Hall 1979 , Tutu et al, 1994) . 1 University of Ghana http://ugspace.ug.edu.gh The rate of disappearance of the nation's forests has been very disturbing. In 1955 Ghana had about 30,000 km2 of forest - ie 35% of the forest zone was forest covered. By 1972 the total area of forest had fallen to 20,000 km2 - ie one third of the forest disappeared within 17 years implying an average loss of 1.5 km per day (Hall, universitas 1979). According to Hall, projections were exceeded in 1970. For instance, about 31% of the forest area was under cocoa production as the population increased by a five fold from 1922, whereas the chief Conservator of Forests had projected that only 4% of total forest area would be put under cocoa production between 1922 and 1970. In Accra for instance, as a result of population pressure for housing development, the Dzorwulu (suburb of Accra) estates were carved from the Achimota forest reserves. Despite efforts by successive governments to fight the population growth pressure, thought of as one of the major contributing factors, little has been achieved so far. For instance Ghana's population increased from 6.7 million in 1960 to an estimated 14.1 million in 1990 and it is projected to reach 18.7 million by 2000 (Bumb, Atta et al 1993 ). Currently, based on estimates, the population of Ghana stands at about 16.1 million. This continuous growth in population is contributing seriously to deforestation and for the purpose of sustainability there is the need to curb this situation to save present and future generation from severe environmental consequences. 2 University of Ghana http://ugspace.ug.edu.gh An interview granted the Chief Conservator of Forests on 23rd October 1994 on the GBC TV revealed that 2% of the country's forests is being depleted annually through bushfires, logging and shifting cultivation. On the other hand, tree planting according to him stood at 2,000 hectares per annum. The expected population pressure and the associated farming practices, are likely to exert much more pressure on the already overstretched resource base. As a result, more agricultural lands will be demanded implying the cutting of more trees for farming which together with other factors will lead to serious environmental consequences. The rate of deforestation in Ghana is of particular concern because the cost of it goes far beyond mere losses of forest products such as timber and woodfuel. There are significant indirect costs, including soil erosion, the substitution of animal and agricultural residues for cooking, (which would otherwise be used for fertilizer), and climate changes. There is therefore the need for a concerted effort from all to fight this menace. 1.1 STATEMENT OF THE PROBLEM Agriculture is one of Ghana's most important sectors. It has two major components; food production and export commodities. Food production is the livelihood of most Ghanaians. Export of crops (eg cocoa) provides Ghana with foreign exchange and thus the capacity to import, invest and develop. The contribution of agriculture to the gross domestic product therefore cannot be overemphasized. In 3 University of Ghana http://ugspace.ug.edu.gh 1989 for instance, its contribution to GDP was about 46% (ISSER 1993, P.75). In addition, agricultural products serve as raw materials to certain local industries and hence fostering the necessary linkages required to boost production. However, these contributions are being made in an unsustainable manner because; 1. Deforestation is taking place at a very fast rate. This constitutes a problem because; a. There is loss of biodiversity. b. There is increase in greenhouse gases. c. There is loss of indirect benefits from deforestation such as; i storage of water thus protecting rivers and streams from drying up. ii amelioration of floods, iii the reduction of erosion and consequent productivity losses, iv the provision of shelter v medicine potential of trees vi fodder and mulch vii option and existence values. Similarly the indiscriminate felling of trees leaves much to be desired. Most concessionaires ignore laid-down rules on girth limit on felling, and this is mainly due to lack of logistics including manpower to monitor loggers, charcoal burners, and other encroachers. It should be pointed out that poverty has compelled most households in Ghana to depend on firewood and charcoal instead of other alternative energy forms. There is therefore the need for 4 University of Ghana http://ugspace.ug.edu.gh effective policy mechanisms to be put in place to arrest these problems. 1.2 RATIONALE AND OBJECTIVES FOR THE STUDY The fundamental reasons behind this study are as follows; 1. To educate people on issues involved in deforestation. 2. To help foresters plan ahead in such a way as to ensure the sustainable use and harvesting of trees in the country. 3. Finally, the study will add to the existing body of literature on deforestation in Ghana which appears incomplete. Based on the above rationale, the objectives set for this work are given below as; 1. To analyze the extent and consequences of deforestation in Ghana by means of data available on forests lost over the years. 2. To discuss the processes of deforestation in the major sectors of the economy. 3. To analyse the incentive systems contributing to the problem. 4. To come out with policy prescriptions to address the problem. 1.3 HYPOTHESIS OF THE STUDY It is hypothesised in this study that; perverse incentive systems arising out of policy and institutional failures are the major contributory factors to deforestation. 5 University of Ghana http://ugspace.ug.edu.gh 1.4 METHODOLOGY The methodology of this study is a combination of econometric analysis, a survey and tabular representations followed by the required analyses. The combination chosen reflects not only the paucity of data on deforestation alone, but environmental issues in general. Besides, hardly can one get time series data on the variables identified, for instance, trees destroyed by bushfires, woodfuel consumption (charcoal and firewood), and trees destroyed by mining operations. In addition, most of the available estimates on the production and consumption of wood energy are often based on scanty data which are outdated. Actual studies on wood production and consumption for instance have of necessity been limited both in scope or coverage and in detail (Assim Nyarko 1982, Appiah 1984, Pluth 1986, Tarnawiecki 1986). Since it is hypothesised that perverse incentives are the driving force behind deforestation by economic agents, we have discussed in detail how such incentives affect decision-makers under the various sectors in causing deforestation. These have been supported with the required regression and analysis where necessary. Even though in Ghana farmers encroach on the forests to grow food and cash crops such as maize, plantain, coffee and cocoa, cocoa production is the single most important cash crop which has been established as causing deforestation. Detailed analysis of the cocoa industry and how it causes deforestation have been provided in this study. Whilst cocoa productivity continues to fall, output University of Ghana http://ugspace.ug.edu.gh only increases with the expansion of farm lands into the "virgin forests". Data for the study have been obtained from the Ministry of Agriculture, specifically the Policy Planning Monitoring and Evaluation Division (PPMED), The Cocoa Service Division of The Cocobod and the Bank of Ghana (BOG). For instance data for the regression have been obtained from the Cocoa Service, BOG, The Timber Export Development Board (TEDB), and The Forestry Department (FD), whilst the International Financial Statistic (IFS) year book 1994 provides the Consumer Price Index (CPI) used to deflate the nominal values. In addition, data have been gathered from the Lands Commission (ie from their records) on the issue of concession allocation. Moreover, apart from the survey conducted, data on energy consumption have been obtained from the Ministry of Mines and Energy as well as the Environmental Protection Agency. Data on Mining and Bushfires have been gathered from the Minerals Commission and the National Disaster Relief Committee. Finally, the various University Libraries have helped us with a lot of references such as World Bank Publications, The Courier among others. 1.5 CHAPTER OUTLINE This study is basically structured in six chapters of which the present one comprising the background, the statement of the problem, rationale and objectives, as well as the hypothesis and 7 University of Ghana http://ugspace.ug.edu.gh methodology of the study, constitute the first chapter. Chapter two reviews the existing literature in the domain of this study. Apart from reviewing the existing literature on this issue specifically on Ghana, it reviews the literature on the issue in other developing countries. The same chapter outlines the consequences of deforestation. Chapter three deals with the issue of agricultural practices, giving an in-depth analyses of the processes of deforestation. In addition, an econometric analysis is used to confirm that price incentive causes expansion of cocoa cropland to the forests and hence deforestation. Chapter four delves into other factors like logging, fuelwood consumption, bushfires, mining practices, and the incentive mechanisms behind these in causing deforestation. The chapter begins with the concession processes both at historical and present-day manner of allocating concessions. In this chapter also, a survey result is presented and analysed in order to find out the relative costs of alternative sources of energy. Besides, a statistical analysis is used to confirm how loggers are responding to price incentive to cause deforestation. In chapter five, we discuss the nature of incentives under the various sectors and how they cause deforestation. The final chapter comes out with the findings, summary, policy directives and conclusions. 8 University of Ghana http://ugspace.ug.edu.gh CHAPTER TWO LITERATURE REVIEW 2.0 INTRODUCTION Deforestation results from many activities by man in his bid to make a living on the earth’s surface. A lot of studies have been done on the issue of deforestation especially on the global perspective. Unfortunately, as a result of paucity of data there is difficulty in the quantification of some of the variables relating to deforestation, therefore almost all the literature is based on descriptive analysis rather than the use of econometric analysis to test the various hypotheses. This notwithstanding, arguments normally advanced on the issue of deforestation, are found to be quite plausible. This section reviews the literature on deforestation from two perspectives; the perspective of other developing countries, and secondly the research on the issue in Ghana. 2.1 PERSPECTIVE OF DEVELOPING COUNTRIES. The issue of deforestation has been a major concern to most developing countries and most writers have expressed grave concern about this in their various articles and publications. The type of agricultural practice, and the population growth pressures have had considerable effects on the forests. The traditional slash and burn method of clearing the tropical forest to grow crops has already destroyed great areas which can hardly be left on their own to grow again. Tropical forest land may appear 9 University of Ghana http://ugspace.ug.edu.gh fertile, however this is often an illusion for in many cases the soil is so poor that it cannot support crops for even short periods, the clearings become waste ground and farmers move on to destroy more forests (The Courier Nov/Dec 1976). According to Milas, (1987), in the traditional shifting cultivation, the long fallow periods permitted the soil to regain its fertility but today's population pressures do not make this possible. Barbier et al (1991) argued that in the Amazonia region of Brazil, with the population increase of over 6% compared to the national rate of 2 .8%, small farmer settlements constitute the second major cause of deforestation, causing about 11% deforestation as at 1983. In Indonesia, they found out that shifting cultivation was the major cause of deforestation in the 1980's. Belieres and Strasfogel (1984) argued that deforestation, in all the countries of the third world is due to a growing demand for arable land. They pointed out that traditional farming method based on long fallow periods meant that timber resources could regenerate and the fertility of the land could be safeguarded, but a population increase and the absence of any change in growing techniques led people to compete for land and this in turn led to; an extension of the areas under cultivation, shorter fallow periods, an attendant attack on the forest. Belieres and Strasfogel further pointed out that between 1900 and 1965, about half the forests in developing countries (about a 10 University of Ghana http://ugspace.ug.edu.gh %billion hectares) were apparently cleared to make wa^ Norman Myers (1992) in his article, "The Population/Environment Linkages; Discontinuities Ahead" which appeared in the (Ambio Vol 21 No 1, Feb. 1992), made several contributions to the issue of deforestation. He stated that the rapid growth in human numbers in developing countries imposes unsustainable burdens on the environmental resource base that underpins much economic activity. He asserted that population growth and environmental degradation are engaged in a multiple linkage relationship where one serves to aggravate the adverse impact of the other. Whilst Myers attributed resource depletion to population growth and other factors, he was of the view that population growth is exceptionally the most driving force, and advocated strongly that there should be increased effort to tackle population growth in order to generate a handsome payoff. The United Nations Fund for Population Activity (UNFPA) 1991 report stated that, between 1971 and 1986, the main form of cropland expansion totalled some 1.17 million sq. km amounting to more than 90% of deforestation, and of this expansion, population growth was responsible for 79%, the remaining 21% was attributable to food consumption per person. The report suggested that the estimation above throws preliminary light on the scope and scale of population growth contribution to tropical deforestation. G.O.Barney (1980) pointed out that population growth pressures contribute to the deterioration and depletion of important natural resources in developing countries. In a contribution by J.P. 11 University of Ghana http://ugspace.ug.edu.gh Lanly, (FAO Forestry paper No 30 1982) he asserted that growing rural populations and rising subsistence demands have resulted in the expansion of cultivation onto increasingly marginal soils and have shortened fallow periods. The long gestation period of the forests has magnified the rate of deforestation since when the trees are destroyed it takes several years to replenish. The Courier November-December (197 6 ) argued that because many of the soils under the tropical forests are not capable of producing food on a sustainable bases hence the system of shifting cultivation (agriculture). Southgate and others, (1991) made a magnificent contribution to the issue at stake. According to them, deforestation in some parts of Equador is due to rural population pressure and tenure insecurity. The tenure insecurity was considered the institutional force (bureaucratic processes) which hinders the easy acquisition of landed property. Thus in Equador, institutional weakness was confirmed as allowing colonist^ to be holding on to the land they grab and hence recultivation of such lands (one grabs) several times, and this in effect shorten fallow periods necessary for natural replenishment. Thus, tenure insecurity together with rural population pressures, according to them, constitute the major cause of deforestation in Equador. Lack of proper conservation in the agricultural sector is due to the perverse nature of incentives in the sector. Biswanger (1989) argued that the Brazilian government has reduced taxes on 1 Those who get access to the land. 12 University of Ghana http://ugspace.ug.edu.gh income derived from agriculture by as much as 90% and that this tax overvalues agriculture making it profitable to cut down forests and convert the land to agriculture when in the absence of such discriminatory taxes agriculture would have been unprofitable. Browder (1988) argued that in Brazil a land containing forests is taxed at a higher rate than the one containing only pastures on cropland. Barbier et al (1991), and The World Bank (1991), asserted that in Brazil cattle ranching assisted by generous official subsidies especially for larger ranches is probably the greatest single factor behind deforestation. They further pointed out that land tax system in Brazil provides an incentive to the owners of large farms to convert their forests, as doing so legally exempts them from the tax. In addition, according to them, agricultural income is virtually exempt from Brazil's income tax laws and that land is additionally acquired and converted for speculation and as a hedge against inflation and risky financial markets. Tietenberg (1992) declared that in Brazil, a squatter acquires a usufruct right (the right to continue using a land) by living on a plot of unclaimed public land and using it effectively for at least a year and a day. According to him, if the above conditions are met for five years, the squatter acquires ownership of the land, including the right to even transfer to others. Sum (1989) made reference to Aoki’s assertion that agriculture in Asia is often taxed rather lightly and hence does not encourage owners to cultivate the land more intensively. The implication of this is that extensive cultivation becomes the order of the day resulting in 13 University of Ghana http://ugspace.ug.edu.gh deforestation. Farmers fail to do otherwise but continue to increase production within any means available to help meet the demand of the entire population. This was confirmed by Myers (1992) that population growth serves to induce farmers to overuse and even exhaust the soil. Reed (1992) reported that government pricing policies for exports were believed to have led to deforestation in Cote d'Ivoire. Lopez (1992) asserted that increased output prices contribute to pressures for agricultural extensification. The World Bank (1991) concluded that when well defined property rights for forest resources exist, the private sector has an incentive for careful management of products that have commercial value. There is overwhelming evidence to indicate also that demand for woodfuel by the ever increasing population has been one major cause of deforestation in developing countries. According to an FAO (1981) study on Africa, about 1.3 billion people lived in wood deficit areas. By wood deficit areas, the study implies places where people can satisfy their requirements, but only through unsustainable overcutting. The study further concluded that over 110 million lived in areas of acute scarcity in 1980. Acute scarcity, according to the study, occurs in a situation where even with overcutting, people could not satisfy all their woodfuel needs. By the year 2000, about three billion people are expected to live in wood deficit and acute scarcity areas, according to the study. 14 University of Ghana http://ugspace.ug.edu.gh Poore (1983) stressed that, demand for firewood is a leading cause of deforestation particularly in the more arid and high altitude regions where wood grows relatively slowly. He stressed further that, in many areas, the population is said to have grown beyond the carrying capacity of the local wood supply and thus inducing people to cut firewood faster than it can be replaced by natural regrowth. The UNFPA (1991) cited Pakistan as a case in point where as a result of population growth there has been overcutting of more wood for use as energy. Thus in Pakistan, sheer growth in numbers and the needs of the population have precipitated overcutting and has led to wood crises. According to the report, in Pakistan, wood fuel supply in m^ was 19.5 million in 1985 while the demand was 25 million and this was attributed in part to the country’s population growth rates of 2.5 to 3% per annum. In his contribution in the Courier (No. 40 Nov/Dec 1976), A. Greaves emphasised that increasing demand for wood as energy throughout the world is drawing attention to the potential role that fast growing man made plantations within the tropics can play in contributing towards future requirements. In its 1979 Staff Working Papers, the World Bank argued that developing countries depend on traditional fuels such as firewood, crop residues and animal dung to meet between 50 and 90 percent of the domestic energy needs principally for cooking, and the population increase is causing pressure on firewood resulting in severe deforestation. 15 University of Ghana http://ugspace.ug.edu.gh Farugee and Gulhati (1983) argued that population pressures in land-scarce countries has manifested itself in the growing scarcity of fuelwood, limiting the availability of fuelwood. They further stressed that a series of country studies on energy indicated that nearly 90% of the people in sub-Sahara African countries depend on firewood as a chief source of fuel. Such high dependence obviously can cause mass deforestation. According to the courier (No.95 January/February 1986 p.92), in 1980, 70% of total energy was supplied by fuelwood in developing countries whilst only 19% was supplied in the case of developed countries. Given the present population growth level in most developing countries and the likelihood of continued high prices for commercial cooking fuels such as kerosine and bottled gas, the pressure on woodfuels is expected to grow tremendously in the coming decades in Africa (Pasztor 1988). Africa is the only continent where population is growing at a high annual rate of about 3% and it is projected to be really 1.6 billion in 2025. There is the need for higher-yielding faster growing trees if developing countries are to meet the wood requirements of their ever increasing population. According to the World Bank 1991 report, there has been relatively little progress in developing higher-yielding, faster growing trees for farm rather than plantation conditions. The report further pointed out that the under-investment by the public sector in the development of forest technology, including improvement of genetic base, and unresponsiveness of government systems for supplying seeds and 16 University of Ghana http://ugspace.ug.edu.gh seedlings have further lowered the relative profitability of forestry. The UNFPA (1991), pointed out that the fuelwood shortages tend to strike hardest at the poorest of the poor. Thus those who are disenfranchised in the political, economic, social and institutional terms - and that since governments are disinclined to accord them much attention as they deserve, there is a failure of policy. The report pointed further that lack of support of alternative forms of energy saving technologies contribute to large demand for woodfuel. Viewed in a similar direction the World Bank (1991) argued that in many rural areas supplies of alternative fuels to charcoal and fuelwood such as kerosine, are restricted and costly and lack efficient distribution and marketing systems. In some cases governments are accused of contributing to economic deforestation. In their desperation for foreign exchange, they give out a lot of concessions to people who in turn overexploit the logs indiscriminately. For instance, the November December 1976 edition of the "Courier", argued that the unscientific timber industry has decimated the more accessible areas of the forest to a point where some species will never regenerate naturally again. According to a 1989 study for the International Tropical Timber Organization, a 69-member trade group based in Yokohama, Japan, less than 0.1 of tropical logging is done sustainably. Repetto and Holmes (1983), sided strongly with Barney and Lanly's conclusions that population growth leads to shorter fallow periods. However, they argued further that, to view the problems of 17 University of Ghana http://ugspace.ug.edu.gh environmental deterioration in developing countries as a consequence of growing populations and rising subsistence requirements is to over simplify and in some ways to mistake the current situation. To them, in many regions, the problems are considerably worse than would follow from the sheer increases in numbers. Besides, it was further argued by them that it is not just population growth that is putting pressure on resources; rather population growth in conjunction with other processes is leading to much more rapid deterioration. In Indonesia they found logging to be the major cause of deforestation. This was supported by the fact that while selective logging of commercial species removes 5 to 10 percent of the trees, damage from logging as it is done in Indonesia destroys an additional 40 to 50 percent and this alters the forest fundamentally. They stressed further that the speed of growth of exports, and logging operations in Indonesia is the result of deliberate government policies, backed by generous incentives and concessions to multinational firms. According to the World Bank (1991), when governments view exploitation of forests as a means of generating revenue rapidly,- they may structure concession and other policies to encourage a short-term orientation towards the use of forest resources. Barbier et al (1991) argued that export taxes on logs introduced in Indonesia in 1978 to encourage domestic processing, followed by 1980-83 phased ban on log export has worked, since virtually all log production has been processed domestically and exported as sawn timber, plywood and veneer. They 18 University of Ghana http://ugspace.ug.edu.gh said further that a comparatively low proportion of the production forest rent is taken by the government and that her (government) share in potential rents between 1979 and 1982 remained at 33-35%. According to them this failure to capture rent adequately means that Indonesia is being insufficiently compensated for the depletion of its timber base. In the case of royalties, export taxes according to them are assessed on the basis of timber removals, rather than on the basis of the stock of merchantable stems in the stand. This has therefore encouraged logging operators to remove only the most valuable species and very large marketable highgrade stems whilst ignoring less profitable secondary species. In addition, it was pointed out that replanting incentives in Indonesia is poor. For instance, whilst selective cutting policy is based on 35-year regeneration cycle, the lease on forest concessions is for only 20 years. Thus, the timber companies have little interest in the long-term regeneration of the logged forests. Mining and other developmental projects constitute a major source of deforestation. According to Barbier et al (1991) in Zaire, major development projects like road construction and gold mining operations cause substantial deforestation. The (UNFPA) report 1991 depicted that road building and the growth of urban communities pave way for encroachment on tropical forests in developing countries. It was asserted that based on estimates, about 588,000 sq. km of forestland was lost through this between 1971 and 1986. 19 University of Ghana http://ugspace.ug.edu.gh 2.2 LOCAL PERSPECTIVES (SPECIFIC CASES ON GHANA) In Ghana, several passing references have been made on the issue of deforestation in some research works, brochures, newspapers and reports. Ghana's population is growing at about 3.1 percent per annum. In the work by Benneh and Agyapong (May 1990), on "Land Degradation in Ghana", they argued that since Ghana is an agricultural country all cultivation involves some cutting of the vegetation. The implication of this is that in situations where there was a high population density, fallow periods are shortened putting more pressure on the country's forests. According to Agyemang and Brookman-Amissah (1987), about 70% of deforestation in Ghana is attributed to shifting cultivation. Most studies in Ghana suggest that a wide area of savanna fringing the outer limits of the closed forest zone in the country has been derived from the forest as a result of continuous farming practices (Benneh and Agyapong 1990, Adzobu et al 1991). In their review of Ghana's Biodiversity for the United States Agency for International Development (USAID), Adzobu et al 1991, pointed out that the predominant agricultural systems in Ghana such as those of bush fallow farming and perennial tree cropping involves extensive clearing of forests. In their report captioned "A Western Region Environment- Economy Linkage Study", Tutu and Baah-Nuakoh, (1994) estimated that in the Western Region alone, about 21,699 ha of forests are deforested a year through farming activities and indiscriminate logging. They warned that if the rate of deforestation in the 20 University of Ghana http://ugspace.ug.edu.gh Western Region continues without any serious reafforestation schemes, the forest area will completely be destroyed in 31 years. In their analysis they pointed out that cocoa crop expansion into the virgin forests has been the main cause of deforestation in the Western Region. The contribution of logging to deforestation in Ghana cannot be ruled out and it continues to be intensified despite attempts by the government to check the indiscriminate felling of trees by some concessionaires who in their bid to increase their net returns ignore the approved felling plan by management. As (EPC 1989b) puts it; "in practice hardly is any forest area in Ghana logged under the approved management plan". One of the factors considered to be responsible for this state of affairs is lack of manpower and However, Hawthorne (1993a) stressed that in Ghana the total area of forest affected by logging roads and tracks is seldom more than 30%, and often between 10 and 25%, with much of this in the form of skidding. The implication here is that if logging is done in the right way it need not be a threat to the forest vegetation. In the January 1994 edition of the Green Forum (vol.l No.4), it was pointed out that timber exports in Ghana increased rapidly over the years and that the annual deforestation between 1981 and 1985 was 1.3%. This, the paper stressed, has contributed to the reduction of Ghana's rain forest to about 25% of its original size. Pimentel et al (1991), came to a conclusion that devaluation under adjustment reforms in the early 1980's promoted deforestation in Ghana, by looking at only the growth in timber revenues. 21 University of Ghana http://ugspace.ug.edu.gh Similarly Tutu (1994), concluded that price incentives resulting from the continuous depreciation of the cedi has resulted in huge increases in the production of cocoa, timber and gold and that this has led to deforestation and degradation of the land. He pointed out further that unplanned exploitation of the resources has resulted in deforestation and the destruction of wildlife habitat, as well as resource depletion and degradation. Quoting the Ministry of Lands and Forestry, (1993 p.l) to support his claim concerning the influence of the population pressures on the forests, Tutu contended that resource depletion is also due to the ever increasing pressure from the rapid population growth, which leads to clearing of forests for farming. Most trees are felled for fuelwood and charcoal to meet the energy requirements of the teeming population. The recent survey on the Ghana living standards (GLSS 1991/92) has indicated that about 91% of Ghanaian households use woodfuel as source of energy. Wereko-Brobbey and Nkum (1989) estimated that firewood and agricultural residues constitute about 93% of domestic energy sources in the rural areas. Besides, they claimed that 16% of the urban household use it whilst about 80% of the domestic energy consumed by the urban poor is in the form of firewood. Benneh and Agyapong (1990) estimated that the current domestic consumption of fuelwood per annum is 5 ,547,200 m3 and that of charcoal is 1,992,400 m3 per annum. Besides, they further stressed that fuelwood and timber exploitation in Ghana have caused a reduction in the total forest area in 10 years from 22 University of Ghana http://ugspace.ug.edu.gh about 74,400 km2 ( 1977 ) to about 18,500 km2 with the forest reserves occupying about 15,790 sq km. Bushfires continue to threaten the vegetation of Ghana. In 1983, fires razed down vast expanse of land area. Ever since, numerous fire outbreaks have yearly occurred in Ghana destroying both farms and forestlands. In 1994 and this year (1995) a number of fire outbreaks have caused extensive damage to both reserved and unreserved forests as well as cocoa farms. This year the fire outbreak at Chiraa (a town near Sunyani in the Brong Ahafo region) was announced by the GBC TV as the severest, for it razed down vast expanse of forest lands including cocoa farms. The use of fire for land clearing and bushmeat hunting in Ghana are both pervasive. This is encouraged in Ghana because it facilitates the clearing of land, it helps in extending the grazing season for livestock and helps also to make hunting easier. However the frequency of burning has adverse impacts such as; reducing the organic content of the soil erosion. Besides, it exposes the soil to the impacts of soil erosion as a result of heavy rains and wind and this consequently leads to loss of soil nutrients. Mining operations come and go and are a lurking and a serious threat to the forests in certain areas: Ironically these areas (Aflao Hills, Atewa, Cape Three Points, Tano Ofin among others) are in most cases priorities for special protection. Iron Ore extraction around Awaso (Aflao Hills) leads to much forest destruction. Gold mining in the Western and Ashanti regions have become a threat to the forests even though much is not known on 23 University of Ghana http://ugspace.ug.edu.gh this in the literature regarding the number of trees that are destroyed in the various mining operations. Furthermore decisions about mining are often made at the discretion of forest managers. In the introductory part of this chapter, it has been pointed out that most of the literature have used descriptive analysis instead of econometric in analysing issues relating to deforestation, and this has been due to paucity of data. It should be further pointed out that the methodology adopted by the various literature reviewed differs from that used in this study. The methodology adopted by Barbier, Burgess and Markandya (1991), was descriptive when they examined the economic factors contributing to deforestation in three key tropical forest countries - Brazil, Indonesia and Zaire. In their study, they identified agriculture, timber exploitation, woodfuel consumption, ranching, road building, mining, as the main factors causing deforestation in these countries. They further pointed out that misguided policies have also created incentive for forest destruction. In the case of Repetto and Holmes (1983), in looking at the role of population pressure on resource depletion in developing countries, they adopted simulation analysis to establish their claim. The main purpose of the paper was to drew attention to, and illustrate the consequences of the interactions between population growth and other factors like woodfuel consumption, agricultural extensification and highway development. 24 University of Ghana http://ugspace.ug.edu.gh Barbier (1991), however, adopted econometric analysis to examine the incentive effects of fluctuating relative prices for controlling land degradation in Malawi. In the paper, he first developed a simple model illustrating the role of price fluctuations in land degradation, discussed its relevance to Malawi and analysed the available empirical evidence on relative price fluctuations of non-erosive and erosive crops. He found out that fluctuations in relative crop prices and returns may be exerting a significant impact on the incentives for the smallholder to invest in improved cropping systems and land management. In the articles by Southgate et al (1991) "The Causes of Tropical Deforestation in Equador: A Statistical Analysis", reviewed above, econometric analysis was used to confirm that deforestation in some parts of Equador is due to rural population pressure and tenure insecurity. They further considered the rural population pressure as dependent upon the urban population, the fertility of the soil, and road construction. Simultaneous equation of the recursive type was then used in their analysis. On the other hand, Myers (1992) adopted a descriptive analysis in his article to point out the link between rapid population growth and environmental resource base. His main emphasis was that even though there are other factors that cause resource depletion, population growth is the most significant factor. Belieres and Strafogel (1984), used both survey and descriptive analyses in examining the effects of desertification - which they considered to be the results of combined effects of 25 University of Ghana http://ugspace.ug.edu.gh deforestation and particular climatic and pedological conditions. In his (1987) article, Milas used a descriptive analysis to draw a simple correlation between population and environment, and how population, environment and development factors interact in many complex ways. Lopez (1992), in addressing the interaction between the effects of expert crop price changes and institutional factors governing resource ownership and management in Cote d'Ivoire, used both household economic data and remote sensing information on agriculture and forest resources. Lopez asserted that increased output prices can contribute to pressures for agricultural extensif ication. In their book Land Degradation in Ghana, Benneh and Agyepong, (1990) analysed land degradation from a geographical perspective. They used surveys and sampling techniques to point out that population growth pressures, inappropriate farming methods, logging, sea erosion among others, are contributing to land degradation in Ghana. In his article on the "Environmental impact of Ghana’s Structural Adjustment reviewed above, Tutu (1994), used a descriptive analysis to investigate four main questions to determine whether the increased output of cocoa, timber and gold resulting from the Structural Adjustment Programme is taking place in a sustainable way. He concluded however, that the increased exploitation is taking place in a non-sustainable way and that the natural resources of the country are being mismanaged. For 26 University of Ghana http://ugspace.ug.edu.gh instance he estimated that at least about 90% of our virgin forests will be gone in 31 years time. In the case of Tutu and Baah-Nuakoh, ( 1994 ), they used a survey when estimating the level of deforestation in the Western Region of Ghana. Adzobu et al (1991), used a survey and descriptive analysis to provide a sufficient analyses on the biological diversity of the closed forest of Ghana. From the literature, the major factors causing deforestation are; the progressive conversion of forest lands to other forms of land use particularly agriculture involving the slash and burn, as well as the bush fallow system. In addition woodfuel consumption and logging constitute major causes of deforestation. In the case of agriculture extensification and woodfuel consumption, almost all the literature consider the ever increasing population as the major exacerbating factor. It is also evident from the literature that no study has investigated in detail the role incentives play in causing deforestation in Ghana. Such a deficiency has therefore compelled this study, which among other aims, tries to find out the role incentives play in motivating the various economic agents to cause deforestation. Thus we focus not only on the processes by which deforestation is caused, but the incentive mechanisms behind these processes in fuelling deforestation in Ghana. We run separate regression of cocoa output on real price and volume of logs on real price to confirm that farmers and log exporters respond to the 27 University of Ghana http://ugspace.ug.edu.gh price incentive respectively through the depreciation of the cedi, to cause deforestation. In addition, we estimate the value of a mJ of a processed wood and compare it with that exported in the raw form. We further conduct a survey to find out the reasons behind the high patronage of woodfuel by most Ghanaian households as against other energy forms. 2.3 CONSEQUENCES OF DEFORESTATION Deforestation causes immeasurable damage to the ecological system and this in turn affects the entire populace in diverse ways. Unfortunately, it is often difficult for those who are depleting the natural capital1 of the forest to recognize that they are doing so (or have the means to do otherwise). In Ghana, like elsewhere in the third world, the forests are important to the energy sector for protecting and enhancing the power production of hydroelectric dams such as the Akosombo Dam. When forests or other well-vegetated watersheds are cleared, reservoirs often become much shallower due to sedimentation. As a result, less electricity can be generated (since less water can flow through the turbines) and this can shorten the useful economic life of a hydroelectric investment (WB Staff Working Papers No. 690). Power rationing in Ghana was started around the first quarter of 1994 due to a fall in the minimum operating level of the Akosombo Dam. As was witnessed by the entire populace of the It implies the forest,(provided by nature) is a resource that serves as a capital base of an economy. 28 University of Ghana http://ugspace.ug.edu.gh country, this created a lot of inconveniences. Apparently this was likely to affect the 1994 gross national product and subsequent years' output levels even though immediate assessment cannot be known with ease. For instance, Volta Aluminium Company (Valeo), the major user of electricity from the Akosombo Dam, had to lay off workers and cut production, and this affected not only the output level of VALCO alone but the nation as a whole since most industries use the output of VALCO as input. Even though power to its potline was restored after shut down in September 1994, VALCO indicated that it will utilize the power in February 1995 (Daily Graphic, December 5, 1994). As a result of the power interruptions, most offices that depended on electricity had to suspend work till power was restored. At the Universities and other research institutions, power fluctuations affected deadlines of the submission of reports and project works. In the Philippines the United States Agency for International Development (USAID) 1979, reports that as a result of deforestation the useful life of the Ambulclao Dam was cut from 60 to 32 years. Similarly the World Development Report 1981, reported that as a result of deforestation, there was daily rationing of electricity in Bogota, Columbia and this caused the Guatavita hydroelectric complex to operate at only one sixth of its normal capacity. Hence the losses in power generation capacity translate into impaired industrial growth. 29 University of Ghana http://ugspace.ug.edu.gh Deforestation also increases the human and economic losses from natural disasters. Storms, floods, and droughts become major catastrophes when vegetation buffers are removed. In the Philippines for instance, it is roughly estimated that typhoon damage is about $20 million per annum through floods and landslides and are greatly intensified by deforestation of upland watersheds and removal of mangroveJ. Also India and Bangladesh suffer billions of dollars of property damage and tragic losses of life in annual floods of the Ganges River which is made more serious by deforestation in the northern India and Napal4. Even though Ghana is not experiencing to some extent such natural disasters like the typhoon explosions in the Philippines there are a number of occasions when floods have caused extensive damages to lives and property. For instance, on 1st July 19945, there were severe floods at Atico and Bubuashie area, even though no lives were lost, damages ran into millions of cedis. Similarly on 26th August 1989, torrential rains led to the collapse of The Tamale Dam. A State of Emergency was declared and the official death toll was put at three. About 4000 people were affected by the floods. Statistics available indicate that whilst 195 houses were washed away, 82 houses were partly broken, and 36 were completely deserted. Besides, a lot of animals were washed away. After the floods, the i UNEP, 1980, Overview document; Excerpts, meeting on tropical forests. Nairobi. 4 World Bank Staff Working Papers No 690. 3 A frontage report of the Daily Graphic on July 1, 1994 30 University of Ghana http://ugspace.ug.edu.gh officials of the Ghana Highways Authority and the Ghana Water and Sewerage Authorities attributed the extensive damages caused, to choked gutters and farming activities around the catchment area of the Dam and hence silting the dam whilst making the control of the water volume impossible. On 4th July 1995, a torrential nine-hour rain exposed the vulnerability of Accra to floods. The severe floods recorded in the country's history as the most devastating since 1936, caused widespread runoffs in most vicinities in Accra. In this incident, about 23 lives were officially reported to have been retrieved when the floods subsided, whilst over 50,000 people were reported to have been officially rendered homeless. Some of the affected persons were compelled to climb to their roof tops and were later rescued by Relief Officials. Walls of several houses were washed away and some major roads were rendered impassable with the most affected roads being those converging at the Nkrumah- Circle. In addition some bridges collapsed and several gully erosion resulting from the floods, caused extensive damage to property. On the whole the cost of the damage apart from the lives lost was put at about 15.3 billion cedis. After the floods, officials put the causes on shoddy works by road contactors, as well as gutters which have been choked for several years without any attention. Surprisingly they forgot that areas around the Achimota Forests and those along the 37- Burma- Camp could not be affected taking cognizance of the fact that such areas (among others which were not affected) are stocked with trees with some undergrowth. The importance of planting trees was brought home to 31 University of Ghana http://ugspace.ug.edu.gh most landlords and tenants when they realized that those who climbed trees in most affected areas had their lives saved. Besides, some trees blocked floating cars being washed away. Generally trees protect the soil against wind and rain, recycle nutrients, provide shelter, store water, and mitigate the intensity of flooding. Should the current rate of deforestation be perpetuated, it will be no wonder if posterity experience such natural disasters. Deforestation also denies a nation of environmental services that support economic development in such sectors like agriculture and transportation. Such a service like the protection of soil is frequently overlooked or underestimated because it is a public good® not priced in the market place. Nonetheless the loss of such environmental service through inappropriate deforestation often leads to costly development failures and much human sufferings. As far as agriculture is concerned, if the trees are cut indiscriminately, excessive flooding is encouraged since instead of the trees releasing the water retained in them gradually throughout the year, the reverse is the case and this accelerates the erosion of productive soils. Deforestation leads to direct effect of sunshine on the earth's surface. Countries located along the equatorial zone like Ghana where temperatures are very high compound their problems by intensifying deforestation. According to Scientists, the direct 5 A good that has the property of non excludability and non - rivalness in its consumption. 32 University of Ghana http://ugspace.ug.edu.gh effect of the infra-red rays causes skin cancer and other related diseases. The IPPC (World Development Report) estimates that average temperatures may rise by 3 degrees Celsius by the end of next century, (world development report 1992). Trees are known to absorb coj but when they are cut and burned, they release coj and other gases which affect the atmosphere. It is on record that world wide emissions of carbon dioxide, the gas that causes half the greenhouse effect, are estimated to have risen from 2.4 billion tonnes in 1950 to at least 6.8 billion tonnes in 1985^, an average increase of 3.1 percent a year. The four most important greenhouse gases of much concern are; CO2, Methane, Chlorofluorocarbon, and Nitrous Oxide. Deforestation causes wood deficit and if preventive measures are not put in place, it is the women and the children in the rural areas who are the most vulnerable. With increasing needs of cropland (to meet the growing needs of rapid population growth), forests have been reduced and therefore, the availability of fuelwood has become more and more limited. Women have to walk farther for fuelwood and this reduces output of women to some extent. The proximal causes of desertification include overgrazing, overcultivation and deforestation. The above activities strip vegetation from the top soil and deplete its supply of nutrients and organic matter. This leaves the land exposed to the eroding forces of the wind. In situations of drought and desertification, 1 UNFPA (1994) . University of Ghana http://ugspace.ug.edu.gh \v, y# the economic productivity of the land is reduces,, to zero. However drought, no matter how severe, are "ephemeral occurrences" when the rains return the land's inherent productivity is fully restored. In the case of desertification, if it is severe, the land may remain unproductive for many generations till costly remedial measures are undertaken. The economic and human losses to desertification can be staggering. Desertification is sweeping through the northern part of Ghana and this needs to be checked. Grainger (1982) asserted that every year, some 200,000 km2 (an area larger than Senegal) are reduced by desertification, and the loss to agricultural production is about $26 billion a year roughly equivalent to the GDP of Thailand. Moreover, sight should not be lost on the fact that the human cost of deforestation include among others malnutrition and the dislocation involved when pastoralists must abandon their lands to seek employment elsewhere. When deforestation is encouraged, it reduces the earth's stock of biodiversity; flora and fauna found in the forests. In other words, deforestation causes certain species to become extinct. According to the World Bank Staff Papers, the most important cause of the extinction of today's species is the disappearance of the natural ecosystems on which the species depend. Since they are naturally so rich in species, the loss of tropical forests is particularly important in reducing the earth's stock of species. Estimates are that if the current trends continue, some 15 to 20 percent of the estimated 3.5 to 10 million species of plants and animals alive may become extinct by the year 2000 (CEQ 1980, Myers University of Ghana http://ugspace.ug.edu.gh 1979, Ehrich 1981). Extinction is a completely irreversible process, and to extinct other species is to deny the options available to all future generations of human beings. In Ghana like elsewhere in the world, extinction of the animal species deprives Ghanaians of their intake of domestic meat, this is because there is a strong Ghanaian rural and urban dependence on bushmeat and fish5. Also mass exploitation of the nation,s forests denies it of other miscellaneous and revenue generations potential. 2.4 SUMMARY OF THE CHAPTER This chapter has reviewed the existing literature on deforestation. It considered it from two perspectives; the perspective of other developing countries and secondly the specific cases on Ghana, The major sectors identified in the literature as deforesting are; the agricultural sector, the logging sector and the energy sector with population playing a major role. Apart from these factors, partial references have been made in the literature on the price incentive mechanism, bushfires, mining operations and road construction as causing deforestation. Besides, the chapter has also delved into the consequences of deforestation. 3 Asibey, 1966. Also Tutu et al 1994. 35 University of Ghana http://ugspace.ug.edu.gh CHAPTER THREE AGRICULTURAL CROP PRACTICES IN GHANA 3.0 FORMS OF LAND USE IN GHANA Landuse in Ghana takes several forms among which are; agricultural, forest plantations for logging, woodfuel consumption, gathering of products such as hunting for bushmeat and mining. All the above forms of landuse have varying degrees of influence on the nation's forests depending upon the extent of macro and micro-habitat modification. In this chapter however, we discuss agricultural practices as a form of landuse and how it leads to deforestation in Ghana. The table below gives a brief summary of the major categories of landuse. TABLE 3.1: FORMS OF LANDUSE AS AT 1972 (in 000' km2). Land Use Land Use Area % of Total Forest Reserve Wildlife Reserve Unreserved forest Savanna Woodland Tree Crops Annual Crops Unimproved Pasture Bush Fallow & Others 21 12 5 71 17 12 36 65 11 5 2 30 7 5 15 25 TOTAL 239 100 Source; Ministry of Agriculture. Also MTADP, p. 35 36 wn University of Ghana http://ugspace.ug.edu.gh As a good is frequently suitable for more than one use, the figures are not mutually exclusive, neither do they indicate that crops are grown only on these areas. From table 3.1, the Savannah woodland together with the bush fallow constitute the largest surface area in Ghana. The table depicts the threat being posed by both the bush fallow system and land use in the savannah woodland (presumably both for crop production and woodfuel conversion especially charcoal) in the country's forests. On the other hand, the Unreserved Forests constitute the smallest surface area of land use taking only about 2% of the total. Whilst tree crops as at the early 1970,s constituted about 7% of total landuse, wildlife reserve on the other hand constituted about 5% of landuse. 3.1 AGRICULTURE Forest lands are under enormous pressure from alternate forms of agricultural landuse mainly to derive the highest possible economic benefits. The obvious competing alternatives include conversion to food crop farms, palm plantations, rubber plantations, cocoa farms among others. 3.1.1 FARMING SYSTEMS The farming systems in Ghana mainly depend on the traditional long bush fallow periods, mixed cropping with some limited integration of crop/livestock farming to restore fertility. Tree crops including cocoa, oil palm, rubber and coffee are cultivated in the forest zone and most farmers even cultivate more than one 37 University of Ghana http://ugspace.ug.edu.gh tree crop, having different areas within a holding devoted to various tree crops. Food crop production is basically either on subsistence basis or for sale. Generally, there is a separation between food crops and tree crop holdings, nonetheless, there is occasionally, intercropping of food crops with the tree crops during the establishment period of the tree crops. Invariably, the food crops are grown intercropped with some of the common combination being Maize/'Plantain/Cocoyam, Maize/Plantain/Cassava and Maize/Cassava. Although oil palms are grown in the southern parts of the transition zone, there is marginalization of the area for tree crop production. On the other hand, Tobacco and Cotton are the main non­ food crops grown. Even though these are grown as sole crops, they form part of a farm in which food crops are grown in one of the following cropping systems; intercropped Maize/Cassava or Maize/Legumes/Cocoyam, sole cropped maize, yams or Legumes or rainfed rice in valley bottoms. 3.1.2 GUINEA SAVANNA AND THE FOREST ZONES In the Guinea Savanna zone, the predominant system of cropping are as follows; intercropped sorghum/cowpea, maize/cowpea, single cropped maize yams, sorghum, legumes or rainfed rice in valley bottoms. The cultivation of cassava continues to increase in this area, mostly as a result of the early 1980,s drought. The predominant cropping system in the drier Sudan Savanna zone is intercropped sorghum/millet or sorghum/millet/cowpea. According to 38 University of Ghana http://ugspace.ug.edu.gh Agronomists, intercropping enriches the soil faster and shortens the necessity for long fallow period and reduces deforestation. Besides, it checks soil erosion, for instance, ground covers such as legumes can reduce soil erosion and conserve organic matter in the soil. The technology used in crop production is mainly traditional and there is little use of purchased inputs though such packages are provided by commercial companies for tobacco, cotton and oil palm. Land preparation is mainly manual in most areas. In the Upper East region however, the use of oxen for ploughing is common and this seems to be spreading towards the northern and upper west regions. Besides the use of tractors is also common in the northern Ghana. Livestock play a very important role in the farming systems of the savanna zones, and about three quarters of the country’s livestock is concentrated in these areas. In the forest zones, tree crops are very predominant. Most of the country's cash crops are grown in the forest zone. Among the tree crops planted in this zone are; Cocoa, Coffee, Oil-Palm And Rubber. In addition to the tree crops, food crops such as Maize, Plantain, Cocoyam, Banana and Cassava are grown in this zone. 3,1.3 BUSH FALLOW SYSTEM AND HOW IT LEADS TO DEFORESTATION The bush fallow is a system whereby farming activities take place on rotational basis with a fixed settlement. Under the system, a few years of cultivation is followed by a "period of rest" (thus the fallow period) and this allows the land to 39 University of Ghana http://ugspace.ug.edu.gh replenish. The bush fallow system of cultivation is the most predominant form of farming practice in Ghana. In this system, long fallow under regrowth vegetation allows sufficient vegetal to develop before recultivation. The basic features of the bush fallow system are as follows; 1. The cutting and burning of the forests before planting. 2. The retention of tree stumps and minimal disturbance of the soil through tilling. 3. Farm plots are small, (less than 2 ha). 4. Intercropping is normally practised on bush fallow lands and the crops usually planted include; banana, cocoyam, maize and cassava. 5. Farm plots are usually abandoned to fallow, for about 3-6 years in order to resuscitate the soil. 6. The return to the plot for cultivation after a number of years depends on the availability of land. In the above system as the main characteristics depict, the cutting of the forests destroys most trees as the canopy and subcanopy are removed. Besides the burning of the forest kills off most micro­ organisms and seeds. These micro-organisms in the soil burrow holes and chew mulch materials to replenish the soil, but when the soil is burned such organisms die in the process. Even though the system does not remove all trees, the canopy left are the very big ones difficult to remove. Under light to moderate pressure of landuse, with a sufficiently long fallow period, the farm plot returns to secondary forest in 10-20 years. 40 University of Ghana http://ugspace.ug.edu.gh As the population pressure increases, the bush fallow system passes the threshold of sustainability. Long fallow is only possible if population growth and pressure on the land are low. The increasing population in Ghana over the past half century has meant that the demand pressure on land is considerable. Thus the increase in population results in increased demand for agricultural products and industrial raw materials that are grown in the forests. Besides, the increased urbanization means that markets exist for the agricultural produce. The increased demand coupled with a situation where the bush fallow system is under conditions of reduced fallow periods, with consequent decline in soil fertility encourages deforestation. Benneh (1973), asserted that; "there is increasing evidence that the bush fallow system is becoming inefficient....because it is no longer possible for farmers to leave their land long enough under fallow for the soil to regain its fertility. ...The results of a survey conducted ...indicated that in the last 10 years, the fallow period has been shortened from 6 to 10 years to 2 to 3 years. The above has been further reinforced by the case study of Pokua-Nimo (1994) on the Afigya-Sekyere district, who through primary data found out that in the above district, the average fallow period has fallen to as low as 3 years, which is far below expectation. The reason assigned to the reduction in fallow period was high population density and the associated pressure on farmlands. Thus farmers in the district (it is learnt) have responded to the pressure in demand for land as a result of 41 University of Ghana http://ugspace.ug.edu.gh population pressure, by reducing the length of fallow period. Such a short fallow period runs counter to Gourou's assertion (Gourou 1965) that, a minimum of 25-30 year fallow is necessary for the soil to regenerate its lost fertility. This implies the nutrients required by the soil will be lacking and this will require the farmers to apply more fertilizer to the land. Given that food is necessary for survival one may be tempted, particularly if under strong political pressure to allow expansion of farming into forest reserves. The demand for subsistence agricultural cultivation has been compounded by the demand for cash crops such as cocoa, coffee, oil palm and infrastructural development. Such developments have encouraged the reduction of the bush fallow system in terms of the frequency of recultivation. The cultivation of marginal lands such as hill slopes and water courses also contribute to deforestation. Trees cut along river banks cause dried-up wells and rivers. When it rains, the impediments silt the dam and cause extensive flooding. The total land area involved in the bush fallow system of cultivation in Ghana is estimated at 7.2 million ha; and this is over 30% of the agricultural land area. In the forest area the proportion may be as high as 60% (Agyapong and Awadzi 1989). The pressure in such areas therefore directs cropland expansion into both secondary and virgin forests. The table below shows land lost to arable farming or grazing between 1970 and 1982 in the different vegetational zones. 42 University of Ghana http://ugspace.ug.edu.gh TABLE 3.2: FOREST LOST TO ARABLE FARMING BY VEGETATIONAL ZONES AND YEAR IN SQUARE KM Year Forest Savanna Total 1970 139 270 409 1972 * 754 754 1976 * 700 700 1977/78 600 1600 2200 1979 1055 * 1055 1980 107 755 862 1981 232 1070 1092 1982 182 1150 1332 * data not available Source : Forestry Commission, 1983 Accra. From table 4.2, it is seen that between 1970 and 1977, vast expanse of forest lands were lost to arable farming. The situation worsened further between 1977 and 197 9. For instance, expansion into the forest zone was increased by as much as 78%. The fall thereafter can be attributed to a shift from the forest to the savanna that had already been fringed from the virgin forest. 3.1.4 COCOA PRODUCTION Among the various crop alternatives cocoa production is considered the most deforesting since it is the only major cash crop whose cultivation and production continues to eat into the country's rich forests. Cocoa was brought into the country in 1878. The cocoa industry is often considered the life-wire of the Ghanaian economy because of its contribution to the GDP over the years. Until quite recently, it has been the major foreign exchange earner for the Ghanaian economy. The table below shows the trend of contributions of the major exports. 43 University of Ghana http://ugspace.ug.edu.gh TABLE 3.3 EARNINGS BY EXPORT SECTORS, 1986-1992 (US $M) ITEM 1986 1987 1988 1989 1990 1991 1992 gross exports 749 826 881 808 897 998 986 of which 1. cocoa 503 495 462 408 361 347 303 % contribution. 67 60 52 51 40 35 31 2. Minerals 124 159 188 186 242 353 387 % contribution. 17 19 21 23 27 35 39 3. Timber 44 90 106 80 118 124 114 % contribution. 6 11 12 10 13 12 11 4. Non Traditional 24 28 42 35 62 58 65 exports % contribution 3 3 5 4 7 6 Others 7 7 9 12 13 12 12 Source: ISSER, 1993 From table 3.3, the proportion of foreign exchange earnings by cocoa decreased from 67% in 1986 to 31% in 1992 and this may be due in part to the unfavourable world economic order on primary products. This fall has been absorbed by the spectacular increases in earnings of minerals which contributed about 39% as at 1992. Besides, it is seen that the contribution of cocoa to the total export earnings between 1986 and 1992 averaged at 48% of the total export earnings. Cocoa was overtaken in terms of foreign exchange earnings just in 1992. Formerly, cocoa production was concentrated in the Eastern, Ashanti and the Brong Ahafo regions. Currently research has shown that Western region is the highest producer of cocoa beans in Ghana. According to Adzobu et al (1991), by 1975, about 80% of Ghana's Tropical High Forests was under permanent cocoa production. In most parts of the high forest zone and especially in the Brong Ahafo, forest soils are believed to be the 44 University of Ghana http://ugspace.ug.edu.gh most suitable for cocoa production and a considerable number of farms are found in these areas. Low levels of agricultural technology tend to encourage expansion of cocoa production on new lands and hence causing deforestation. This implies that there is always encroachment on forest reserves rather than on existing impoverished cultivated lands. Adzobu et al 1991 pointed out that a reserve area of forests (which hitherto formed part of a closed canopy forest) having the characteristics of moist evergreen and semi-deciduous base stocking, have been devastated by cocoa farms. Table 3.4 below shows the yield per hectare in competing cocoa producing countries. From table 3.4, it can be deduced that, apart from Nigeria and Cameroon which Ghana has an advantage over in terms of yield per hectare, she lags completely behind all the other countries in terms of yield per hectare. This is quite surprising because the country used to be the leading producer in the late 1950,s through to the late 70,s when it was overtaken by other minor producers such as Indonesia and Malaysia. Ghana's productivity for instance is only 26% that of Indonesia. Thus a hectare of land in Ghana can only produce about a quarter of what that same land can produce in Indonesia. 45 University of Ghana http://ugspace.ug.edu.gh TABLE 3.4: AVERAGE YIELD PER HECTARE OF COCOA IN THE MAJOR PRODUCING COUNTRIES (1989/91). Country Average yield kg/hectare % of Ghana to other countries Ghana Nigeria Cameroon Cote d'Ivoire Brazil Malaysia Indonesia 300 200 260 600 550 800 1170 150 115 50 55 38 26 Source : Nyanteng, Policy and Options, Isser, 1993. p.78. Tutu et al (1994) advanced a plausible argument regarding how cocoa production and expansion is eating into the virgin forests in the Western region and the associated deforestation being caused by that. They argued convincingly that since there has been about 60% increase in output without any significant productivity increase, it means that conversion of new lands to cocoa farms has taken place, and that, such expansion has been achieved at the expense of more clearing of virgin forests in the western region of Ghana. They argued further that whilst output of cocoa production is increasing, productivity keeps falling. The implication of this is that, it is the area under production especially the virgin forests having higher productivity, that keep expanding each year. The most important factors recognized for the low productivity of land and labour in agriculture in Ghana include, the quality and quantity of inputs used, the extension network and inadequate moisture for plant growth. The forgoing implies that without due regard to putting in place measures that can enrich the already existing 46 University of Ghana http://ugspace.ug.edu.gh cocoa lands, improving the quality and quantity of other inputs, increases in cocoa output can only be achieved by resort to virgin forests. 3.1.5 COCOA PRODUCTION AND DEFORESTATION Cocoa production involves the clearing of the forests whilst leaving some few canopy trees (especially those with a sizable girth). Even though the cocoa service does not recommend the cleared lands to be burned before transplanting the seedlings, some conservative farmers ignore this directive and go ahead to burn the land before transplanting. This, according to some farmers, prevents the early growth of weeds and thus saves them labour cost (thus labour required to weed the land). Hence, the process of land preparation for the purpose of producing cocoa apparently causes deforestation in three main ways; 1. The original clearing of the land leads to the destruction of quite a sizable number of trees both small and large ones. For instance the smaller sized trees which are supposed to replace the old ones are extensively felled, and this is against the forestry department laid-down rules. 2. The use of fire by some farmers to burn cleared lands sometimes stretch to other nearby forests to cause destruction to them. Besides, the trees (canopy) that are left behind, most often get destroyed by the use of fire to burn the lands for transplanting. As the girths get burned, effective photosynthesis is disrupted and the most affected trees die 47 University of Ghana http://ugspace.ug.edu.gh permanently in the process. 3. In addition, cocoa production in the forest zone opens up the area to other encroachers like hunters who advertently set the forests ablaze to hunt for bushmeat. According to Tutu et al 1994, cocoa production in the Western Region alone is destroying about 22,000 ha of the nation's forests each year. In spite of the conversion of forest lands to tree crops such as cocoa, it should be pointed out that such conversions have some beneficial environmental effects compared to conversions to food crops. For instance, the tree crops absorb nitrogen and are able to reduce the impact of the sun within the vicinity. Besides, they maintain the flow of streams in and around the area for use by the farmers. 3.1.6 ECONOMIC REASONS OF DEFORESTATION ARISING FROM CROPLAND EXPANSION The most plausible economic argument underlying cropland expansion and the resulting deforestation is the seasonal price hikes. To confirm this, cocoa output is regressed on real producer price. 3.1.7 DESCRIPTION OF VARIABLES - COCOA AND REAL PRICE The variable cocoa is measured in metric tonnes and refers to the marketed output or the output of cocoa beans made available to the Ghana Cocobod for export or for local processing, it is the dependent variable in this analysis. 48 University of Ghana http://ugspace.ug.edu.gh Real price is used in this analysis to refer to the real producer price announced by the Government to be paid to the cocoa farmers for their cocoa output sold to the Cocobod or other buying agencies in cedis/tonne. It is obtained by deflating the nominal price announced by the Government (or paid) in the respective years to cocoa farmers, by their corresponding CPI 3.1.8 MODEL TO BE ESTIMATED The supply model to be estimated is stated in mathematical terms as follows; Economic theory is ortnodoxed on some expectations regarding the signs of parameters to be estimated. Assuming cocoa output to be a "normal good", economic theory implies that in all specifications the parameter of the real price should be positive. Thus it is expected that an increase in real price offered to farmers should lead to an increase in quantity supplied. In other words the quantity supplied is a function of price. It will be argued further that the supply of cocoa has a gestation period of where f(Pt_ij)>0 but <1 Qst = The total quantity of cocoa supplied in metric tons in year t. Pt_5 = Real producer price lagged 5 years in cedis/tonne Vt = The error term. 49 University of Ghana http://ugspace.ug.edu.gh between 4-6 years. Nyanteng (1977) argued that depending on cocoa variety planted, a cocoa tree starts bearing pods from about 4-6 years after planting. Based on this, it can be argued that an increase in the real price of cocoa in any particular year does not affect the supply of cocoa on the market within the first 3 years. In this study, the average gestation period of cocoa output between the minimum and the maximum, thus 5 years is considered. Thus for this analysis, an increase in real price in a particular year for instance is assumed to lead to an increase in supply of cocoa by 5 years time. As real price increases, more cocoa beans are supplied implying that more trees are destroyed in the process which in effect, accelerates deforestation. The data used for the estimation covers a period of 1969 to 1993 (see appendix for full data). 3.1.9 EMPIRICAL RESULTS AND DISCUSSIONS The results presented below show QSj. as the regressand in a linear form. Qst = 192.5 + 0.1819Pt_5 (45.44) (0.0764) 4.236 2.382 R2 = 0.744 F = 22.34 DW = 2.0339 The main equation shows the intercept and the exogenous variable coefficient. Those in brackets are the respective standard errors whilst the underlined values show the T-Ratio. R^ is the 50 University of Ghana http://ugspace.ug.edu.gh coefficient of multiple determination whilst F-ratio determines the overall significance of the regression coefficient in the estimating equation. From the results, the expected results have been obtained. The overall regression coefficient is significant at the 99% confidence interval since the F calculated is greater than the F in tables meaning that one can put enough confidence in the regression coefficient. The regression coefficient of real price lagged five years is significant at the 95% confidence level. Thus an increase in real producer price in year t is expected to lead to an increase in cocoa output in year t+5. Besides the sign of the coefficient conforms to "a priori" expectations. The indicates that the real price, considered alone, accounts for over 74% of the variation in the supply of cocoa output between 1969 and 1993. Also the omitted non quantifiable variables explain about 26% in the variability of the regressand. As the economy grows all sectors are expected to expand. This necessitated the inclusion of real income to find its effect on the Cocoa Industry. With the inclusion of this variable, (real GDP) both coefficients were found to be significant at the 99% confidence level (See Appendix for results). This implies that the growth of the economy between 1969 and 1993 also led to the expansion of the cocoa sector. This is plausible since cocoa has been the major leading sector of the economy of Ghana over the years. 51 University of Ghana http://ugspace.ug.edu.gh According to the World Bank 1990, "richer soils combined with more inputs are responsible for higher yields in Brazil and Malaysia vis-a-vis Ghana and West Africa in general". Moreover, it has been established that productivity has fallen in major producing areas in Ghana and that cocoa output can only increase by converting more "virgin" forests into cocoa production. In effect, as more lands are put under cultivation when real price increases, more hectares of forest lands are subjected to deforestation. The boom (as a result of the price incentive) in the cocoa industry leading to a shift of resources from other sectors to the cocoa production (for export), can further be supported by the Edward's theory. Edwards (1988), did examine the effects of trade liberalization on the labour market within the contest of a three sector trade model. He assumed a small open economy producing three goods, an exportable, importable and a non-tradable good. These are produced using capital and labour. The exportable is the most labour intensive good, followed by the non-tradable and the importable is the least labour intensive. These assumptions are consistent with observations that, less developed countries export labour intensive goods. In such a model Edwards depicts that in a situation where trade liberalization leads to a fall in the price of importables, the relative price of importables, and non­ tradables will also decline (where the price of exportables is the numeraire) . 52 University of Ghana http://ugspace.ug.edu.gh Under flexible labour markets then, and in the short run, Edwards demonstrates that the following conclusions may hold with respect to the labour market. 1. Wages will increase in terms of importables (thus exporters will like to capture the initial rent in the exportables therefore they move to that area. The few that remain thus receive all the profits that would have accrued to the others) and decrease in terms of exportables and non-tradables. 2. Labour will move out of the importables sector and into the exportables and non tradables. Besides (in the long-run), the production of exportables will increase, whilst the production of importables will fall but the production of non tradables may increase or decrease. In this case, Edwards' theory reinforces the price incentive issue. Thus Ghana, having undertaken liberalization policies under the Structural Adjustment Program, and likening Edwards' assertion to the Ghanaian economy, one expects price relativities. In Ghana, changes in relative prices have occurred and this is evident by the continuous depreciation of the real exchange rate and the reduction in the anti export bias (Jebuni, Oduro and Tutu 1992 ). It is expected that the production of tradables should expand relative to that of non tradables. According to Jebuni, Oduro and Tutu (June 1993), evidence for the period 1984 to 1990 shows that there was in fact an initial increase in the share of tradables in the GDP until 1987 where there was a decline thereafter. Thus the increase in exportables serve as a catalyst to more demand for land which in 53 University of Ghana http://ugspace.ug.edu.gh turn causes deforestation. Hence the rents associated with the price incentive is being captured in an unsustainable way. This is because vast expanse of forest lands are being destroyed to capture those rents at the expense of future generation. It should be pointed out that one is not advocating for a reduction in price paid to farmers but that such price increases which have been possible as a result of persistent devaluation/depreciation of the cedi among other reforms can hardly be sustained for ever. Tutu (1994) pointed out that between 1978/79 and 1987/88 the nominal price increases averaged 100% a year compared to an annual average of about 10% a year after 1988. The increases were only 5% in 1989/90 and 12% in 1991/92. Based on the above therefore, it can be inferred that the ability of the government to sustain the increase in the nominal price of cocoa continues to erode. There is therefore the need to institute and encourage other mutually reinforcing policies that can better survive the Cocoa Industry perpetually. The Cocoa Research Institute has been able for instance to achieve a productivity of about l,400kg/ha with the experimentation with some selected farmers through the supervised use of fertilisers. Profitability was also enhanced by at least four times the present level. In sum, such mutually reinforcing policies include: increasing productivity and putting the same or less land under cultivation by other means (eg. making fertilizer and other inputs available); 54 University of Ghana http://ugspace.ug.edu.gh enhancing the processing of more cocoa beans. Hence other options to price increases (resulting from continuous depreciation of the cedi) such as : implementing the experimentation results (which encourages farm intensification) where profitability and productivity would be enhanced by at least four times the present level, as well as processing (instead of exporting raw cocoa beans) which are mutually reinforcing should be encouraged. 3.1.10 ESTIMATED HECTARES OF LAND LOST THROUGH AGRICULTURE Successive annual reports from the department of Forestry in Ghana indicate that between 1976 and 1984 alone a total area lost annually ranges from 86,000 to 250,000 ha in both the closed and savanna woodland. Other estimates, for instance, The World Bank puts the loss at 7 2,000 ha per annum. 3.2 SUMMARY OF THE CHAPTER This chapter has looked at the effects of agricultural practices and how they lead to expansion of farms into the forest zone. The chapter points out how the slash and burn system as well as the shorter fallow periods predominant in most farming communities continue to threaten the efforts of sustainable forest management. The chapter identifies that in Ghana population growth pressure is the major factor reducing the fallow period and hence causing pressure on the forests. 55 University of Ghana http://ugspace.ug.edu.gh In this chapter also, special attention has been devoted to cocoa production because it is the single major cash crop whose production threatens the forest zone. The regression results have confirmed that price incentive due to the continuous depreciation of the cedi is causing cocoa farming extensification. 56 University of Ghana http://ugspace.ug.edu.gh CHAPTER FOUR 4.0 LOGGING, FUELWOOD CONSUMPTION, BUSHFIRES AND MINING. 4.1 LOGGING To recall from the forms of landuse in Ghana outlined in chapter three, logging happens to be one major forms of landuse, with timber harvesting being one of the factors contributing to deforestation in Ghana. Logging activities have been more intense in recent decades in the semi-deciduous zones than the evergreen forests because there are greater density of desirable timber trees particularly in the Brong Ahafo region. Logging, it is often said, can be tolerable or destructive depending upon the method of harvesting. Heavily logged sites and roads are victims of soil erosion and poor plant regeneration. This chapter looks at logging, woodfuel consumption, bushfires and mining and how they cause deforestation, as well as the incentive mechanisms causing these. 4.1.1 HISTORICAL AND PRESENT-DAY CONCESSION ALLOCATION PROCESS In Ghana, the dominant means of allocating rights to harvest timber is through an area based tenure, or timber concession. Such a right gives the holder a secure supply of timber, which is extremely valuable to loggers and processors. Indeed, a reliable future wood supply has been the primary concern of many of the forest industry persons contacted during our rounds. Concessions granted between the period of one to three years are termed licenses whilst those granted for over three years are termed 57 University of Ghana http://ugspace.ug.edu.gh leaseholds. It is on record that about 1.68 million hectares (ha) of forest land is in forest reserves whilst 0.37 million ha is outside the reserves. Before 1962, felling rights had to be obtained from the custodians of Stool Lands or from private individuals who owned the land and only required validation of claim by a judicial tribunal. When a timber contractor is granted a concession, it should be registered and contested, in an event of any dispute in the High Court. With the exception of very limited hectares which the government of Ghana had acquired for the public services, land was owned by Stool Clans, families and private individuals. However during those periods, all timber concessions within the confines of the high forest zone were governed by the Provision of the Concessions Ordinance Cap.136, which gave the courts the power, jurisdiction and authority to make inquiry into, and certify as valid or otherwise any concessions^. A certificate of validity issued by the Courts in respect of any concession was held good and valid against any person claiming adversely thereto, subject only to the power of the Courts to endorse on such a certificate the rights of any person or persons who could be declared or proved subsequently to be the owner or owners of the land covered by the certificate10. ^ This assertion is based on a report of a Commission of Enquiry led by Mr. Blay, to enquire into the Affairs of the Ghana Timber Co-operative Union in 1968. 10 Ibid. 58 University of Ghana http://ugspace.ug.edu.gh However, in 1962, the Courts were stripped of the jurisdiction and control over all matters relating to the granting of concessions. By the combined effect of Acts 123 and 124 of the Administration Lands Act of 1962, the Minister responsible for Lands, acting for, and on behalf of the President of Ghana was vested with the sole power and authority to grant timber concessions and deal with all such matters connected with timber lands^1. Thus, under the powers conferred on it by legislation, the central government has since 1962 been responsible for granting timber concessions. The Lands Commission which took over this responsibility for both on and off reserve concession retained it until 1991. When the granting of concessions came under the control of the Minister of Lands, according to Blay.- rent seeking became the order of the day in the granting of concessions. Such a system was wholly condemned since it was detrimental to the industry in terms of the production of timber both for export and for domestic use. After 1962, three of the timber concessions of Gliksten West Africa Limited, which had been acquired long before the coming into force of Acts 123 and 124, were cancelled by the Minister and were re-allocated to Ghanaians1^. Unlike the colonial era, when concessions were granted for as long as 90 years in some cases, the maximum period for concessions after independence had been 25 l'L Ibid. ^ Ibid. University of Ghana http://ugspace.ug.edu.gh years^. This has been the case till January 1991. Since then the maximum concession period has been fixed at 40 years. Under the FRMP this responsibility of granting concessions has since 24th January 1991 been transferred to the Ministry of Lands and Forestry. A Timber Lease Committee was constituted to make recommendations to the Minister, for the allocation of concessions. The unit is headed by a Deputy Chief Conservator of Forests. The very low and fixed concession rent of $22 per ha (until 1991), together with low royalties, has caused an excess demand for concession which has taxed the administrative capacity of the allocating institution, and encouraged patronage and informal payments resulting in the allocation of concessions to unsuitable applicants. These applicants often did not possess the equipment to operate the concessions and were only interested in concessions as a speculative investment. Low concession rent creates the incentive that makes suitable forest management more difficult. Low fees signal that the forest resource is economically plentiful while in Ghana this is clearly not the case. Consequently, loggers, processors and other entrepreneurs will attempt to acquire concessions to insure future log supply or for speculation rather than immediate timber supply. Under the current concession allocation system, an application for a timber concession is submitted to the Concessions unit of the Forestry Department. The applicant is expected to provide information regarding the structure of the company in question, This is based on the records of the Lands Commission. 60 University of Ghana http://ugspace.ug.edu.gh staffing positions as well as logging and processing capabilities. This information is used to evaluate the application. The criteria for evaluation are based on a formula (designed by the committee) to evaluate technical forest management and logging capability, capacity and efficiency of utilization of plant and raw material, value added capability, existing concession holdings, financial resources and sound business practice, and contribution to economic and social development. With the view to introducing a competitive element in the concession allocation, there is also a clause in which the applicant is asked to quote an amount in excess of the minimum concession rent that he would be willing to pay to obtain the concession. The Forestry Department chairs a multi-agency allocation Committee under the current process. Other members of the committee include, the Financial Controller of the Forestry Department, Forestry Commission, The Forest Product Inspection Bureau, Timber Export Development Board, the five forest districts and the industry representative. The committee began announcing allocation decisions in August 1991 to November 1991. It resumed activities again in January 1992 and met regularly until April 1994. During its relatively operating period, the committee allocated a large number of concessions as summarized below. 61 University of Ghana http://ugspace.ug.edu.gh Table 4.1 : CONCESSIONS GRANTED BETWEEN 1991 AND 1994 BY THE FORESTRY DEPARTMENT CONCESSION NUMBER HECTARES In forest reserves 10 113,383 Outside reserves 109 603,086 TOTAL 119 716,469 Source: Concessions Unit, Forestry Department Accra. Concession fees are charged on those who own land concessions. Such concession rents are charged per year for the total hectares leased. Till 1992, the concession rent per hectare of land used to be 05,00. At the moment (since 1992) 0 1,000 is being charged per ha/year. 4,1.2 ROYALTIES Royalty is a type of fee paid by a concessionaire and it is charged per volume of trees cut. This amount varies directly with the quality of the tree. Thus whilst some low quality trees attract a low royalty fee those with higher quality attract a higher royalty fee. The current royalty fees in cedis per cubic metre range from 4,000 for Bombax and other low quality trees, to *513,220 for Afromosia. In 1991 for example the royalty fees, in cedis per cubic metre was only 1,220 whilst the estimated competitive willingness to pay at that time was 020,740 or ($69) per cubic metre (F.R.M.P working papers P.231, Tutu et al 1994), Since the fee is quite low compared to the competitive willingness to pay, this creates an incentive for loggers to fell timber 62 University of Ghana http://ugspace.ug.edu.gh indiscriminately. Thus the result of such low fees is that cost of harvesting is artificially reduced and loggers can afford to harvest much more forestland than would be efficient. The failure of the government to capture this rent also means that the wealth tied up in these forests has typically gone to a few, now wealthy individuals and companies rather than to the government to be used for alleviation of poverty or other worthy social objectives. Besides, there are cases of evasions by some loggers. For instance as at mid-1992, concessionaires were billed by the District Forestry Office on the basis of felling returns by the Forest Guards. Since these Guards often failed to check the fellings due to their lack of mobility and insufficient remuneration, they (loggers) evaded the royalty fees through under-reporting. In 1993, the estimated total amount of royalties from the forest reserves according to the LMC was 0396,058,300 for a total of 188,738 cubic metres of logs cut, indicating an average of 0-2,098 per cubic metre or 3.6 5% of the average stumpage value*1 or 2.05% of the average FOB price. The estimated total amount of royalties from all sources (forest Reserves and Open Forest) in 1993 was 552,937,390 ,400 against 1,682,288 nr* of logs cut which represents an average of 01746 per cubic metre*3. According to Gray (1983), the term refers to the value of standing timber located on the stump in the forest. 13 Kwabia-Boateng 1994. 63 University of Ghana http://ugspace.ug.edu.gh Other forest fees collected by the Forestry Department are Concession rent, compensation payments and fines. Over the period 1989 to 1991, the concession rent amounted to less than a US cent per cubic metre. The compensation payment is a charge to the concessionaires to cover the cost of restoring a site damaged in felling. The compensation is set by the courts but invariably the cases die at the preliminary stages before they reach the courts. This is due to the strong links some of these loggers have with some government officials. Fines are penalties imposed on loggers who fell illegally and under-sized logs but hardly are such culprits brought to book because they often connive with some officials in authority. In effect, all this contributes to deforestation. 4.1,3 EVALUATION OF GHANA'S TIMBER TRADE Ghana's forest industry is an important sector of the economy contributing as at 1993, 11% of total export earnings of between 110-120 million dollars annually. In 1989, the forest inventory recorded 680 species of which 66 were potentially marketable. In any given year, about 40 species are shipped regularly. Timber export is normally considered as processed wood. Such logs are cut into slices and exported. Log export usually involves the export of the whole tree with no value added to it. From Table 5.2, it is evident that the value from timber export has been increasing from 1985 through to 1990 even though there was a fall in value oi about 11% between 1991 and 1992. On the output side- 64 University of Ghana http://ugspace.ug.edu.gh between 1984 and 1988, output increased from 148,000 cubic metres to a peak of 550,000 cubic metres. Even though there was a fall in timber export for two consecutive years thereafter, it has started increasing once again. Total earnings reached a highest level in 1988 contributing about $107 million and has been fluctuating thereafter on an average rate of about $110 million. Despite the fluctuations in the price, the volume of timber exports continues to be high. This is because the exporters are responding to increasing revenues arising out of the depreciation of the cedi which gives higher earnings in cedis. Thus higher price incentives being enjoyed by such exporters is the economic factor behind the continual exploitation of logs and hence causing deforestation. This can be supported further by the fact that the proportion of processed timber to total wood exported has been falling. The table below shows the export of timber by volume and value TABLE 4.2: EXPORT OF TIMBER, VOLUME AND VALUE Year Vol 000 nr Unit, $/mJ value Total Earnings $ million PTTWE (%) 1984 148 143 20 62 1985 247 113 28 67 1986 291 151 44 27 1987 497 182 90 32 1988 550 195 107 na 1989 378 214 81 na 1990 373 319 119 na 1991 394 315 124 na 1992 401 280 114 na Source : World Bank, Ghana : Progress on Adjustment, 1991 p Isser, State of the Economy, 1992, 1993 p.63 Statistical Service Quarterly Digest of statistics, March 1993. Notes: Vol -> Volume. PTTWE -> proportion of timber to total wood exported (%). 65 University of Ghana http://ugspace.ug.edu.gh Isser 1993 p,55 confirmed this, thus; "although incentives have been created under the economic reform programme for an increase in the production of processed timber, there seems not to be an appreciable response to the stimuli for the production of lumber and veneer. Rather there is a rekindled interest in the export of unprocessed timber logs. From the TEDB gazette (1993) the total area of forest plantations is 76,460 ha of which 50% is teak. The timber industry is oriented more to the export markets and in terms of volume, a high of 1.2 m3 was exported in 1973. Records also show that there was however a drastic decline over the next decade to about 102,000 m^ in 1983. As a result of the introduction of the ERP which was initiated in 1983, the export volume increased to about 428,000 irr* by 1993. As at 1994, there has been abuses in the industry as most concessionaires fell timber indiscriminately to earn more foreign exchange due to the depreciation of the cedi. The European countries still remain Ghana's major traditional timber export market. In 1991 they accounted for 82.6% by volume-0. During the high volume years in the 1970's shipments were made to the Middle East, North Africa, Australia, US, German Democratic Republic, Yugoslavia, Hungary China and USSR. When economic conditions deteriorated in the 1980,s, Ghana lost its share in these markets. From marketing point of view the outlook is very positive for Ghana to expand in traditional trading countries and diversify into new markets. Over the past 5 years, log production has stabilized at L'‘ From the records of the TEDB. 66 University of Ghana http://ugspace.ug.edu.gh Isser 1993 p.55 confirmed this, thus; "although incentives have been created under the economic reform programme for an increase in the production of processed timber, there seems not to be an appreciable response to the stimuli for the production of lumber and veneer. Rather there is a rekindled interest in the export of unprocessed timber logs. From the TEDB gazette (1993) the total area of forest plantations is 76,460 ha of which 50% is teak. The timber industry is oriented more to the export markets and in terms of volume, a high of 1.2 mJ was exported in 197 3. Records also show that there was however a drastic decline over the next decade to about 102,000 nr* in 1983. As a result of the introduction of the ERP which was initiated in 1983, the export volume increased to about 428,000 m^ by 1993. As at 1994, there has been abuses in the industry as most concessionaires fell timber indiscriminately to earn more foreign exchange due to the depreciation of the cedi. The European countries still remain Ghana's major traditional timber export market. In 1991 they accounted for 82.6% by volume1* - During the high volume years in the 1970's shipments were made to the Middle East, North Africa, Australia, US, German Democratic Republic, Yugoslavia, Hungary China and USSR. When economic conditions deteriorated in the 1980,s, Ghana lost its share in these markets. From marketing point of view the outlook is very positive for Ghana to expand in traditional trading countries and diversify into new markets. Over the past 5 years, log production has stabilized at From the records of the TEDB. 66 University of Ghana http://ugspace.ug.edu.gh around 1.0-1.3 million mJ and the total volume of logs and wood products exported at 400,000-500000 m3 annually. World markets have been in recession since the late 1989 and have not yet recovered. The industry in Ghana is dominated by private ownership though there are eight State Owned Companies which account for about 33% of exports. The latter are being offered for sale under the ongoing divestiture program. 4.1.4 LOGGING PROCESSES AND DEFORESTATION Logging in the forest reserves is supposed to be done under laid-down rules. For instance,, no tree with a diameter breast height of less than 68 cm (107 cm for many species) may be felled; at each selection felling, 1-2 trees per ha, average merchantable volume of 7.87 m' per tree, are to be removed. Such measures are put in place to ensure the natural regeneration of the forests and also to maintain the right canopy balance. However, due to the low level of resources by the forestry department as well as the rent seeking practices, effective supervision of the loggers is ignored. In the non-reserve areas, as a result of low levels of resources to monitor loggers, the indiscriminate logging has led to serious deforestation. There have also been very little afforestation with only the teak tree as the most frequently grown tree specie. It is sad to note that trees such as teak are unable to restore the biodiversity that is lost through the initial deforestation. Besides, the afforestation is only a mono-tree activity and 67 University of Ghana http://ugspace.ug.edu.gh therefore not very effective initiative to counter deforestation through logging. Apart from the indiscriminate logging of trees and the associated deforestation, loggers most often ignore road specification dimensions stipulated by the Forestry Department. For instance, access routes created by loggers pave way for other encroac'ners such as farmers. Besides, since most chain-saw operators hide in the bush with their unlicensed machines to fell trees indiscriminately, they also pose a threat to the forests. As has been pointed out lack of logistics by the Forestry Department makes monitoring impossible. It should be pointed out that one of the most important deforesting aspects of timber exports is that the proportion of processed timber to log exports, has been falling. This proportion increased from about 62% in 1984 to 67% in 1986 but fell drastically to 32% in 1987. 4.1.5 THE LOG EXPORT MODEL In this section, to confirm that loggers respond to price incentives, a regression of volume of logs (raw timber), is run on the real value from the export of logs. The log export model to be estimated is stated in log linear mathematical terms as: VL.( = 6 REL31 U Log VLX = 6 + Bj Log RELX + U Where VL? implies the volume of logs exported in year t measured in cubic metres. 68 University of Ghana http://ugspace.ug.edu.gh RELj -> Real earning from log exports in cedis. Uj -> The error term. In the above formulation the supply elasticity is easily identified since it is simply the estimated regression coefficient. The "a priori" hypothesis underlying this is that B< is expected to be positive implying that an increase in real earnings from log exports leads to more volumes of log exports. This in effect implies more trees are cut in the process and as the laid-down rules are not respected, deforestation results. 4.1.6 DESCRIPTION OF VARIABLES - LOG EXPORT AND REAL VALUE OF LOGS This variable is measured in cubic metres (m3) and refers to the total volume or amount of logs (raw timber) exported abroad to earn more foreign exchange. In this analysis, it is the dependent variable. Real value of logs refers to the earnings from exporting logs abroad. The values have been obtained by multiplying the nominal values denominated in dollars by their respective exchange rate values in a particular year and dividing each value by their corresponding CPI (as provided in the IFS) 4.1.7 EMPIRICAL RESULTS AND DISCUSSIONS The results as presented below shows VLS as the regressand in the log linear form. 69 University of Ghana http://ugspace.ug.edu.gh VLS = 0.1719 + 0.445RELX (3.9288) (0.0397) 0 ,0437 11.1873 R2 = 0.9121 F-Stats = 21.76 DW = 2.0609 The above equation shows the intercept and the exogenous variable coefficient (RELX). The values in brackets are the respective standard errors whilst the underlined values depict the T-ratios. The above results uphold the "a priori" expectations of the sign. The coefficient of RELx is significant at the 99% confidence level. The regression coefficient is significant at 99% confidence level using the two tail test. The omitted and non quantifiable variables explain about 9% of the variability in the volume of logs exported. The real value from log exports alone accounts for 91% of variation in the volume of logs exported between 1972 and 1992. It is therefore not surprising that since last year (1994) a directive has been issued banning the exportation of logs. This is because the government has realised the extensive deforestation being caused by the regular exportation of raw logs. In the case of log exports, with the inclusion of real income (real GDP), the coefficient of the income variable though had the expected sign, was not significant. This implies that the expansion 70 University of Ghana http://ugspace.ug.edu.gh of the economy between 1972 and 1992 does not explain the volume of log exports. 4.1.8 EVIDENCE OF TIMBER OVER-EXPLOITATION Table 4.3 below gives a clear evidence of how the trees continue to be depleted. Based on the 1989 felling rate, only Dahoma, Kyenkyen and Avodire are growing in excess of their respective felling rate. These species are growing in excess of their current felling rate because whereas their annual allowable cut (AAC) were respectively 75,600, 33,300, 13500, as at 1989, their extraction levels were only 15,000, 15,000 and 30 m^ per year respectively. Alternatively, Mansonia, Wawa, Guarea and Danta are not in danger in the short-term. A specie is not in danger in the short-run when though the current extraction rate (CE) is greater than the AAC and yet the difference between the two is not so big to raise much concerns. Besides, such species have many stocks (at the same time), above the felling limit as has been depicted on the table by these species. For instance, from table 4.3 even though the CE of Wawa is 366,000 nr per year which is greater than its AAC of 136,000 by 230,000, yet its stock above felling limit is 26.4 million. All the other species listed, especially the traditional high priced redwoods (thus Edinam, Sapele, Utile and Mahogany), have their present felling rates exceeding the AAC and the current harvest of these species can no longer be maintained without depleting the resource in the next 20 years. Considering Mahogany for instance, the difference between the CE and the AAC is over 71 University of Ghana http://ugspace.ug.edu.gh half the CE, whilst its stock above the felling limit is only 524,000. This therefore makes such a specie more vulnerable. In fact, a shift from the current felling rate to the sustained exploitation of these resources will have a significant impact, on the forest industry and traditional supply configuration. Table 4.3: ESTIMATED RESOURCE LIFE BASED ON 1989 FELLING RATE. SPECIES (FL) C.M STK ABOVE Odum 110 1,408,000 Edinam 110 468,000 Sapele 110 702,000 Utile 110 465,000 Mahogany 110 692,000 Afromosia 110 Wawa 70 26,400,000 Guarea 70 524,000 Dahoma 70 5,254,000 Kyenkyen 70 3,700,000 Shedua 70 154,000 Mansonia 70 695,000 Danta 70 1,254,000 Avodire 70 2,400,000 AAC -> Annual Allowable Cut. FL -> Felling Limit CE -> Current extraction LF -> Life of Resource CM -> Cubic metres Source: Ghana Forestry Department - Overseas Development Administration. 4,1,9 REFORESTATION AND AFFORESTATION SCHEMES Over the years, Ghana has been increasing her interest in plantations and has been seeking ways to improve the survival rates. This is due to the fact that industrial plantations have a role to play in supplementing natural forests resources. Such plantations require long-term investment and patient-expert AAC CE LF CM/YEAR CM/YEAR (YEARS) 28,700 173,000 10 7,200 33,200 18 13,500 41,100 25 8,000 31,900 20 31,500 66,900 20 7,200 1367000 366,000 114 5,000 11,000 82 75,600 15,000 * 33,300 15,000 * 2,000 10,600 18 2,800 5,800 226 10,100 24,800 85 13,500 300 * * -> Growth exceeds felling V A 72 University of Ghana http://ugspace.ug.edu.gh attention to ensure eventual harvests, for such efforts will in the end benefit the country in wood supply, employment and income. A Gazette by the Timber Export Development Board (August 1993), depicts a lot of reafforestation and afforestation Schemes. It is on record that Ghana has about 52,000 ha of industrial wood plantations. Out of this, 6,000 ha were planted before 1969 and another 36,000 in the 1970 ,s. Besides, of the 49,000 ha under the control of the Forestry Department about 53% are planted with Teak (Tectona Grandes), 16% with Cedrela (C. Odorta), 8% with Emeri (Terminatea Ivorensis) and 6% with Mansonia (M. Altissima). There are also about 3,000 ha of Gmelina (G, Arborea) planted by the Subri Industrial Plantations Limited. Teak plantation is one interim measure put in place to control deforestation. Since the inception of the programme, Ghana has developed about 25,970 ha of teak and more than 4,200 ha of teak are reported to have been planted before 1960 (see appendix) However, only 28% (6,885 ha) of the planted areas are considered to be successful by the compartments where they are located. Better success rates were obtained for plantations now aged between 20 and 24 years old which represent approximately 4980 ha thus about 71% of the overall successful trees planted. The tropical harvesting regime requires thinning at ages fourteen and twenty years to give room for the final crop at the age of thirty-five. At the moment, Teak is being harvested from Ghanaian plantations regularly with the principal outlet being transmission poles either for use within Ghana or for export. Shipment of teak poles was about 24,000 m3 in 73 University of Ghana http://ugspace.ug.edu.gh 1993 and this was mostly to India^. However, as part of a continuous process of balancing resources against demand a temporary restriction on the export of Teak originating from the forest reserves has come into operation. Some conversion into sawn specifications is also taking place regularly, and it is expected that a steady export business in Teak will build up. The International Tropical Timber Organization (ITTO) is assisting Ghana with $322,743 to develop pest resistant Iroko (Odum) that can be grown in plantations in the country^. Iroko is one of the most valuable and durable timbers in Ghana. It is recognized in Overseas markets as a worthy alternative to Teak. It is believed that much of the garden furniture in the UK for instance is made of Iroko. There is considerable demand for Iroko as lumber and machined products, as well as sliced veneer. The Iroko project is being carried out between the Forestry Research Institute of Ghana (FORIG) and the Northern Arizona University of the USA. Cedrela, another tree specie is a medium to light weight redwood which originates from South America. Ghana has been growing it in plantations for a number of years, and early harvests of smaller diameter trees are taking place as part of a thinning exercise to give room for best growth to trees left behind. Logs of diameter up to 40cm have so far been extracted. Cedrela can be used for furniture, joinery and veneers. l7 This is from a gazette published by the TEDB in 1993. 13 Ibid. University of Ghana http://ugspace.ug.edu.gh A non-Governmental Organization, The Ghana Afforestation Foundation (GAF) has also been assisting rural communities and schools in tree planting as part of the non formal national afforestation drive. The organization has been providing organized communities and schools with fast growing commercial and locally utilisable tree seedlings for the woodlot. It further provides technical advice on afforestation. It is also on record that between 1975 and 1989, The World Food Programme (WFP) provided logistical support valued at $2 million to the Forestry Department of Ghana for its reafforestation and wildlife programmes. Besides, in February 1993, it further donated trucks and equipment valued at $22,500 to the Forestry Department to strengthen its conservation and management capabilities in Ghana's forestry. In addition, community forestry to meet local needs is becoming an important activity, with villagers being helped in various ways to allocate land and plant trees. For example, at Tetrefu (a small village near Kumasi), the people through self help have planted Teak, Cassia and Leucaena species as part of an agro­ forestry project providing fuelwood,. shade amenity, timber, poles and Cashew nuts. A number of different other organizations are assisting in work of this kind. Such organization include The Ghana Association for the Conservation of Nature (Gacon), The Integrated Community Centre for Employable Skills (ICCES), the Ghana branch of the Friends of the Earth, Aid from Overseas sources including Netherlands, plus professional inputs from the Forestry Department. 75 University of Ghana http://ugspace.ug.edu.gh The Swiss Lumber Company Limited, a timber firm at Manso Amanfi, in the Western Region, has also embarked on an afforestation programme. The aim is to support the government to protect the environment. The Company has so far planted over 20,000 tree plants and these include Wawa, Mahogany, Edinam, Sapele, Lovoa, Guarea and Ofram. There are also residual forests outside the forest reserves and these include intact plots in the form of Sacred Groves. Some of these are quite small but there are estimated to be at least 2,000 of such Groves which are valuable small scale conservation areas as well as respected elements in culture. They symbolise the variety of ways in which the forest has always had to respond to the everyday needs of local peoples. It is necessary for all Ghanaians to support the efforts towards afforestation drive being made by the Government, non- Governmental Organizations, Schools and individuals and communities. This is because without well maintained forests, Ghana's industry will not be capable of continually feeding its evolving manufacturing industry with raw material and also realise its full potential in the timber industry. In spite of these afforestation and reforestation schemes by individuals and non­ governmental organizations, much more needs to be done. For instance, the Tetrefu village project though commendable, covers a small area of about 10 ha. There are some individuals who are willing to go into tree planting but the required inputs such as readily available seedlings are not there. The research carried by 76 University of Ghana http://ugspace.ug.edu.gh NEB/UNDP in November 1988 reported that some charcoal burners have indicated their willingness to go into tree planting should seedlings of suitable fast-growing tree species be made available to them. Besides, since the projects are of small scale they hardly get the required extension service assistance. Much has not been initiated on wood growing for firewood except few isolated cases in the Northern part of the country. In these parts, the higher demand for firewood to boil Pito (a local drink), has compelled some individuals to grow wood for fuel. There is lack of motivation for others to go into tree planting whilst the existing ones are not seeing any major expansion. This is because the dry conditions in the North require some irrigation mechanisms to water the trees especially at the very tender ages. Unfortunately, nothing of this sort has been conceived by the authorities concerned let alone implement it. 4.1.10 COMPARISON OF THE VALUE OF A M3 OF LOG-EXPORT WITH THE VALUE OF THE SAME CUBIC METRE OF LOG PROCESSED This section compares the estimated value of a mJ of log exported, with the value of that same log processed. Thus the value -3 of a mJ of log exported is compared with a finished product - specifically a living room suite. The m' log used in this analysis is of 0.266 metre diameter thickness. When such a log is exported (thus in the raw form), the Freight On Board (FOB) price quoted by the TEDB averages $110. According to the Assistant Production Manager of the Akuaba 77 University of Ghana http://ugspace.ug.edu.gh Furniture Works Factory, for every set of living room suite, his outfit uses 0.43 m3 of wood. This implies that for every m3, they obtain about 2.32 sets of living room suites. From their records, under a strict supervision, a manpower of four uses nine hours to produce the required living room suites. Below are the breakdown of the variable costs incurred in processing the m3 log to obtain the required sets. 1. An hourly labour-cost of the factory averages about #1,200. This implies, for the four-man manpower, the factory incurs a cost of 04,800 in every hour. Hence for the nine hours, the cost incurred is (4800 * 9) 043,200. 2. On the other hand the fabric used for each set costs £198,000 whilst the foam used for the set costs 0140,000. Thus; (0198,000 * 2.3) = 0455,400 (0140,000 * 2.3) = 0322,000 3. The cost of fittings such as screws, nails, white glue among others required for a set is given as 015,000. Thus for a cubic metre wood, the cost of fittings incurred is (015,000 * 2.3) 034,500. 4. The final cost incurred in producing the set is the costs of chemicals used for finishing. On their records, for every set, they use one gallon of lacquer which costs 023,000 at the moment. In addition, they apply one gallon of Sanding Sealer on each set and this also costs 023,000. Hence the two gallons used on each set cost 046,000. When this is multiplied by 2.3, the cost incurred comes to 0105,800. University of Ghana http://ugspace.ug.edu.gh From the above, the total variable cost incurred using a cubic metre of log comes to 0960,000. From the sales department of the industry, a set of living room suite sells at 1.3 million cedis on the local market. Thus, with the 2.3 set derived from a m^ of log, the value including the production cost comes to (2.3 * 1.3) 2.99 million cedis. The mark­ up gives (2.99- 0.96) 2.03 million cedis. On the other hand the value of a living room suite exported is estimated to be about $1800 on average which implies that the processed itv* log fetches $4140 or 04,843,800. By taking away the processing cost of f5960 ,000 the mark-up comes to 03,883,800. There are two types of export prices that may be used in determining the value of a mJ of a log. According to data obtained from FPIB and TEDB sources, while international FOB prices vary from $240 - $300 for some species and $600 - $900 for others, FOB prices for logs reported by local exporters range from $100 - $125, with an average price of $110/mJ Since it is inappropriate to use international prices in the calculation of the value of a m^ of log exported, as this will obviously lead to over-estimation of the value of logs exported. On the other hand using the FOB prices reported by the local exporters will definitely reflect the quality and standard of local logs1'. Kwabia-Boateng (1994), also used this argument when calculating the stumpage value of some tree species in Ghana. 79 University of Ghana http://ugspace.ug.edu.gh Based on the above, and using the average FOB prices by local ' I exporters, it is estimated that a m^ of log (equivalent to 2.3 sets of living room suite) is $110. At the current average rate of about $1,170 = $1, this comes to <£128, 700. From the above if the value of a m3 of a log exported ($128,500), is subtracted from the export value of sets of living room suites (derived from that same m3 of log), we get the net value of the value added (as a result of processing). Thus $3,883,800 - $128,700 gives $3 ,755,100. Hence the value out., of processing a m3 of a log in this particular factory is $3,755 ,100. 4.1.11 MERITS FROM PROCESSING i 1. The finished product of a living room suite creates more employment avenues for the masses. It can crdate an employment equivalent of about four times that of exporting raw logs. 2. It also creates forward and backward linkages. For. instance the purchase of inputs such as nails, screws among others are examples of backward linkages preated and this in effect serves as an impetus for such industries like pioneer nails to expand and produce more. In the case of forward linkage; the wood is used to produce industrial alcohol which other factories buy and use for cleaning the heads of factory machines. i t 3. The output of' saw millers from a processed log to say a lumber is about 52% but in the case of Akuaba Furniture Works,1 Mr. Amoako (The Assistant Production Manager ),< conf irmed that, in 80 University of Ghana http://ugspace.ug.edu.gh their industry, there is no waste content in the course of processing implying that every bit of the wood is used up. For instance most of the particles and pieces are used as infilt. 4. Even though in other saw mills the waste level is between'48- 50 percent, the wiste is normally sold to households to use as energy. This can be in the form of firewood, charcoal as well a as saw-dust energy. For firms with 50% wastage, even though this will reduce the value added of $3.8 million, it can help check deforestation through using them as fuelwood. There is the need to make credit available to firms who want to go into processing as well as the existing ones who want to expand. More forest guards should be employed to monitor loggers to oblige by contractual agreements on felling. Forestry Officers as well as the guards should be well remunerated. In the case of the guards, their remuneration should further be tied in a percentage to the amount involved of defaulters they arrest. " f 4.2 WOODFUEL CONSUMPTION AND DEFORESTATION Woodfuel in the form of charcoal and firewood are the major forms of energy used by both urban and the rural folks. 4.2.1 FIREWOOD, During the 1960,s through to the early 80,s, dry wood was cut for firewood in most rural and urban areas of Ghana to light fire. However the population pressure coupled with the demand for lands for agricultural purposes and other land practices, have changed 81 University of Ghana http://ugspace.ug.edu.gh this trend. These days, in the rural and urban communities, women and children spend a lot of time to walk miles from their settlements to fell young and wet trees, allow them to dry before using them for both domestic and other purposes. A survey conducted by the Statistical Service of Ghana on the living standards of Ghanaians for 1991/92 concluded that, across the country as a whole, rural dwellers spend on average three times as long each day collecting wood as their urban counterparts. Moreover, half of all households in Ghana engaged in fetching wood spend on average almost two hours a day in this activity. There are also commercial operators these days who team up with chain saw operators to fell young and wet trees, pack them in the bush and allow them to dry, before they are finally transported to urban areas and cities for sale. Thus, firewood gathering, considering how the wood is harvested indiscriminately without due regard for replacement is causing extensive deforestation in the country. TABLE 4.4: MAJOR FUEL FOR HOUSEHOLD (IN PERCENTAGES) IN SOME URBAN CENTRES IN GHANA. STUDY TOWN CHARCOAL FIREWOOD GAS ELECT! Obuasi 72 9 . 3 — 4.2 Kumasi 81. 5 4.4 - 1.2 Sunyani 57 20.1 - 1.0 C . Coast 62 8.1 9.1 - Koforidua 61. 3 24.7 - 1.8 Tema 65.2 0.7 10 .0 Ashiaman 83 . 7 2.1 - 0.7 Accra 69.4 1. 7 9.8 2.8 Tamale 40 .4 34.8 1.0 - Bolgatanga 68 .0 11. 7 0.5 - Ho 53 .3 19 . 5 - 4.3 Takorad.i 76 , 5 - 1. 7 5 .1 Source : Adapted from UNDP/NEB November 1988. 82 University of Ghana http://ugspace.ug.edu.gh From Table 4.4 below, firewood was the second major energy form patronized by the households after charcoal. Even in the regional capitals where one expects higher dependence on electricity and gas this was not the case. In Sunyani, Koforidua, Tamale and Ho, considerable proportion of the people depend on firewood and charcoal. It is important to note that even the most industrial city in Ghana, Tema, where one expects higher patronage of energy forms such as gas and electricity, those interviewed consume 65% of energy in the form of charcoal. The above trend can be supported by the survey of the Statistical Service of Ghana, on the Ghana Living Standards Survey (GLSS 1991/92). In the survey the rural patronage of wood as fuel was estimated to be 87.2% whilst that of charcoal, gas, electricity, kerosine were respectively 8.2%, 0.3%, 0.1% and o.5%. In Accra alone, charcoal use as energy was estimated to be 69.4%, whilst firewood, gas, electricity, kerosine were respectively 3.0%, 14.1%, 4.6% and 8.7%. Poverty was advanced as the major reason for such a higher inclination. 4.2.2 CHARCOAL Charcoal burners use both dry and wet wood for their activities. The charcoal contractors, like the firewood suppliers, team up with chain saw operators and fell trees indiscriminately in order to supply the woodfuel needs of the population. The most affected regions are the Brong Ahafo and the Ashanti regions with the savanna woodland being the major culprit, Even though there are no reliable time series data on charcoal consumption and production 83 University of Ghana http://ugspace.ug.edu.gh in the country since some participants do it on subsistence bases, yet a study in November 1988 by UNDP/NEB based on primary data revealed the seriousness of the activities of charcoal burners. Table 4.5 below shows the trend of charcoal consumption in Kumasi and other urban areas. Traffic check points were mounted on Mampong and Kintampo arteries to Kumasi for two consecutive days, the outcome is presented in the table below. Out of the 2,490 bags of charcoal (124,500 kilograms) that entered the Kumasi artery on the two days, 54.6% came from Kintampo and much of the rest from Nkoranza. Table 4.5: INFLOW OF CHARCOAL THROUGH THE KUMASI ARTERY. Ton of Veh No. of bags Destination Source of Charcoal 5 160 Kumasi Kintampo 10 150 H Atebubu 7 40 !! Nsuta 7 200 M Nkoranza 3 70 >1 Nsuta 7 200 »» Kintampo 7 200 n Nkoranza 10 200 I I Kintampo 7 200 !I Kintampo 7 120 M Amantin 10 200 ! Nkoranza 7 200 II Kintampo 10 200 I f Kintampo 7 150 f ! Nkoranza 10 200 T! Kintampo Total 2,490 Source: Adapted from UNDP/NEB November 1988 Notes: Ton -> tonnage Veh -> Vehicle No. -> Number. 84 University of Ghana http://ugspace.ug.edu.gh From table 4.5 above, the inflow of charcoal through the Kumasi artery for the two days in which the research was carried out was 124,500 kg. This implies that 62,250 kg of charcoal passes through the Kumasi artery on daily bases. Based on the above, within a month, about 1,867,500 kg passes through that artery alone, whilst the yearly inflow is estimated around 22,410,000 kg. A similar exercise carried out in October 1988 by the National Energy Board and the United Nations Development Project, to track charcoal entering Accra-Tema from the Volta Region particularly Gyemeni Port, yielded a figure of 152,850 kg on the two census days. Out of this number, 74.7% (131,000 kg) came from Gyemeni Port. Gyemeni Port and market function only once a week so that the 114,200 kg would represent that from Gyemeni in a week. This works out to be 19,050 kg a day in a six-week day. The source of this charcoal is from the Kwahu-North district of the Afram plains in the Eastern Region. According to the Charcoal burners interviewed, they prefer the dry wood for charcoal burning to the wet wood since the former is richer in terms of charcoal quality. They confirmed that for a tree of a height of about 350-400 cm, with bottom diameter of about 0.6 metres, they are able to extract about five maxi bags of charcoal. If it is assumed that most of the trees around Kintampo and Nkoranza, have this dimension then for the bags of charcoal that pass through the Kumasi arteries each day, (for distribution and consumption in Kumasi and other urban areas), 249 such tree types are destroyed on daily basis. Within a year the charcoal burners in the Nkoranza-Atebubu-Kintampo area alone 85 University of Ghana http://ugspace.ug.edu.gh destroy approximately 89,640 trees having the above dimension. 4.2.3 ANALYSIS OF RELATIVE COST OF USING ALTERNATIVE ENERGY Tables 5.6 through to 5.10 show the estimated results of the interview conducted on some residents at Achimota, Alogboshie and Abeka (suburbs of Accra). Though the interview granted the thirty respondents was informal, its real purpose - thus to ascertain from them history of major energy form, used over the years, and the expenditure involved, was achieved. Under each table are some notes or clues about the computation of the table. In the case of the fixed costs (TFC), shops in the city centre were surveyed to know the average selling price of electric stove, gas stove, coalpot and kerosine stove. The fixed cost of firewood was imputed because most users admitted having made them. Besides, the total variable cost (TVC) are based on estimates since most respondents could not give the exact units of the respective energy consumed each day. In the case of electricity,- estimates are based on metre readings vis-a- vis the expenses made by the respective household members in every two months. In order to minimize the effects of other electrical gadgets on the energy units consumed by households, households with many electrical gadgets are excluded from this analysis. However, since the metres do not record separately the use of other minor appliances like heater, iron, radio among others, the analysis captured their effects in a way despite the fact that the TVC was slashed down in the respective household units. SOURCES IN GHANA. 86 University of Ghana http://ugspace.ug.edu.gh From the tables, in general, th^ additional costs incurred as the household members increase (MC), depicts a downward trend from an initial higher level and rises thereafter. On the whole, the highest MC is being incurred by kerosine users with a six-member household spending $4,100 every two months. Thus as the number of households increases, more costs are incurred if‘the household uses kerosine as a source of energy. On the other hand households which use gas spend the least amount as their household membership expands. For instance, with an increase in the household membership from five to six the additional expenses incurred is $710.00. On the other hand, the use of firewood and charcoal are respectively the next least cost as the household membership expands. In the case of per unit cost, the highest per unit cost incurred among the alternative energy sources used by households is that of gas. A household for instance spends as much as about $100,500 at the onset. This is followed by the use of electricity with a single household spending about $36,000 in the initial stage with subsequent expenditures reflecting in the MC as the household members increase. In the case of Charcoal and Firewood, a unit household in the initial period spends $5,500 and $2,300 respectively. From table 4.7, as household members increases from one to six there is an increase in expenditure on gas by about 83%. Similarly the change (increase) in expenditure on electricity as the household unit increases from one to six is 79%. Applying the same analysis on firewood and charcoal the changes (ie the increases) were smaller in percentages as the household members 87 University of Ghana http://ugspace.ug.edu.gh increased from one to six, and they are respectively 35% and 59%. It should be pointed out that such higher per unit costs incurred ( among users of gas, electricity and kerosine are rooted in.-. the higher fixed cost elements of these energy sources which in effect translate into their respective total costs (TC). For instance a gas cylinder with a filling capacity of 54kg costs about $65,000 on the market whilst its complement the stove sells at $30,000 on the market. On the other hand, the fixed costs incurred in the use of charcoal and firewood are very low. Coalpot for instance sells between $3,000 and $4,000 on the market. Some respondents even confirmed that whilst electrical stoves are frequently serviced with a fee the use of coalpot can last for 3 years without . any service. In the case of firewood the respondents confirmed that, it is just a matter of getting the clay for the tripod, since there are volunteer experts (neighbours) who build for others at no fee. The ongoing gives a clue regarding why people of course, ignore other energy forms such as electricity, gas and kerosine.and switch on to firewood and charcoal. Thus, households patronize those with least fixed cost, because of poverty, since they do not have the resources for the fixed cost of: the othfer alternatives. In Ghana the distribution of income is uneven with majority of the people falling within the poverty zone. The only alternative left to the unfortunate large number of low and middle income groups is to switch from other energy .sources which are costly in relative terms to firewood and charcoal whose prices are quite moderate. University of Ghana http://ugspace.ug.edu.gh The high demand for both firewood and charcoal serve? as incentives to suppliers to fell more trees to satisfy the needs of their customers and in so doing, deforestation is caused. In Ghana where the population continues to grow at about 3.1% per annum, coupled with low household incomes, more households are expected to fall on firewood and charcoal and if nothing is done on the initial higher fixed cost, this will no doubt serve as a catalyst to > ' causing harm on the nation's forests. TABLE 4.6: FIREWOOD CONSUMPTION OF SOME SELECTED HOUSEHOLDS. M/M of H/H ( $ ) TFC U ) TVC ( C ) TC U ) AFC U ) AVC ( Imputed cost of tripod 2. TVC -> Firewood consumption of respective households; for two months 3. M/M -> Members of household 89 University of Ghana http://ugspace.ug.edu.gh TABLE 4.7: GAS CONSUMPTION OF SOME SELECTED HOUSEHOLDS. M/M of H/H ( Cost of Gas Cylinder and Gas Stove. TVC -> Cost of refilling and delivery estimated in every two months M/M -> Members of household TABLE 4.8: CHARCOAL CONSUMPTION OF SOME SELECTED HOUSEHOLDS. M/M of H/H $ TFC $ TVC $ TC $ AFC $ AVC ATC $ MC 1 3,500 2,000 5 , 500 3 , 500 2,000 5,500 5,500 2 3,500 3,500 7,000 1,750 1,750 3,500 1,500 3 3 , 500 4,800 8,300 1,167 1,600 2,767 1,300 4 3, 500 5,900 9,400 878 1,478 2,356 1,100 5 3,500 7,000 10,500 700 1,400 2,100 1,100 6 3,500 10,000 13,500 583 1667 2,250 2,000 Notes: 1 1. TFC -> Cost of Coalpot 2. TVC -> Expenditure on Charcoal in every two months 3. A bag of Charcoal costs $5,000.00 4. M/M -> Members of household Notes: 1. 2 . 3. University of Ghana http://ugspace.ug.edu.gh TABLE 4.9: ELECTRICITY CONSUMPTION BY SOME HOUSEHOLDS. M/M of H/H t TFC TVC TC > -a- Q AVC ATC $ MC 1 30,000 6 ,000 36,000 30,000 6,000 36,000 36000 2 30,000 7,000 37,000 15,000 3,500 18,500 1,000 3 30,000 8,400 38,400 10,000 2,800 12,800 1,400 4 30,000 10,000 40,000 7 , 778 2,500 10,278 1,600 5 30,000 12,000 42,000 6,000 2,400 8,400 2,000 6 30,000 15,000 45,000 5,000 2,500 7,500 3,000 Notes: 1. TFC -> Cost of electric stove 2. TVC -> , Units of current consumed by the stove and other • gadgets. To minimize the effects of other gadgets on units consumed, households using many ■ electrical appliances were not interviewed 3. The cost of a unit of current consumed at .the moment stands ‘ at about Members of household 91 University of Ghana http://ugspace.ug.edu.gh TABLE 4.10- CONSUMPTION OF KEROSINE AS A FORM OF ENERGY BY SOME SELECTED HOUSEHOLDS M/M of H/H TFC TVC TC $ AFC AVC ATC $ MC 1 15,000 4,000 19,000 15,000 4,000 19,000 19O0O 2 ■ 15,000 6 , 000 21,000 7, 500 3 , 000 10,500 2,000 3 15,000 9 , 000 24,000 5000 3,000 8,000 3,000 4 15,000 12,200 27,200 3,778 3,050 6,828 3,200 5 15,000 15 , 400 30,400 3,000 3,080 6,080 3,200 6 15,000 19 , 500 34,500 2, 500 3,250 5, 750 4,100 Notes: ■’ 1. TFC -> Cost of Karosine Stove 2. TVC -> Expenditure on Kerosine in every two months Jj 3. A gallon of Kerosine sells at $1,500.00 4. M/M -> Members of household *■ 4.2.4 ESTIMATED WOODFUEL CONSUMPTION A research carried out by the NEB/UNDP in 1988 showed that , about 79% of those (5,158 people) interviewed on the use of alternative forms of energy, use charcoal and firewood. In Ghana estimates are that 72% (FA0 1978), 75% World ! Bank (1988)/ 82% (Yarney 1991), 85% Asibey (1990) of Ghana's domestic energy requirements are satisfied by woodfuel, valued at $200 million, which is higher than those for timber and other forest products combined, estimated at $150 million'® } The volume of wood utilized for fuel in Ghana has been projected to increase tremendouslyas a 70 See Chachu 1993, on Generating Energy from Biomass. I * 92 University of Ghana http://ugspace.ug.edu.gh result of urbanization.^ Since poverty has compelled most urban and rural households to patronize the use of woodfuel as their major source of energy, poverty alleviation should therefore be a major priority of the government. The government can also subsidize the cost of the less patronized energy forms. The Forestry guards should be well remunerated, and this will serve as a motivation for them to monitor the activities of charcoal burners in the bush. 4.3 BUSHFIRES Bushfires constitute one of the most important causes of vegetation (forests and savanna) destruction in Ghana. They normally occur on annual basis particularly in the dry season from November to May. Their occurrence coincide with periods when significant combustible materials are available and such fires are more widespread in the savanna than in the forest areas. The causes of bushfires are either advertent or inadvertent. Fire profoundly controls the structure and composition of the vegetation over most parts of Ghana. Without regular fires, large areas of Savanna would be forest and the rest would at least support a greater density of trees than now. 21 World Bank Staff Appraisal Report. Ghana Forest Resources Management Project. 93 University of Ghana http://ugspace.ug.edu.gh 4.3.1 RECORDS OF SOME FIRE OUTBREAKS In the exceptionally dry years of 1982/83 following a succession of drought years there was over 40 fire outbreaks in the closed forest regions in Ghana (Okyeame-Agyei, 1988), During these years an assessment by FAO indicated that 50% of Ghana's vegetal cover was destroyed by bushfires. Fires continued to raze down vast expanse of forest lands after the 1982/83 incidence. Table 4,11 below, shows the incidence of bushfires in 1984/85 by regions and vegetation. TABLE 4.11: INCIDENCE OF BUSHFIRES IN GHANA. NOVEMBER 1984 - MAY 1985 Region Main Vegetation Main Crops # of fires % of total in 1984/85 Western s.d.f T and C 46 4.6 Central c . s M and Cas 92 9.1 G. Accra c . s M and Cas 68 6.8 Eastern s.d.f C and Op 96 9.6 Volta s.d.f C and Rc 107 10.6 Ashanti s.d.f C and T 104 10.3 B/A t . z C and T 110 10.9 Northern sav R and M* 145 14.4 U/E sav S and M* 125 12.4 U/W TOTAL sav S and M* 112 1,005 11.1 Source: Bennen And Agyapong 1990, Land Degradation in Ghana. Notes: sdf -> Semi-deciduous forest. cas -> cassava. sav -> Savanna. R -> rice. cs -> coastal savanna. M* -> millet. T -> timber. Rc -> root crops Tz -> Transitional zone. Op -> Oil palm. M -> Maize. C -> Cocoa. 94 University of Ghana http://ugspace.ug.edu.gh Table 4.11 depicts how badly fire has been destroying the vegetation of Ghana. It is seen that timber destruction was common in the Western, Ashanti and the Brong Ahafo regions (the regions that happen to be rich in timber) and this might have a long term effect on the production of timber. From these records it is not only timber that falls victim to bushfires, but also food crops. Even though it is generally accepted that farming activities as well as logging are more deforesting on records than damages caused by fires, yet the effects of fires on the vegetation are also critical. It is on record that at least 4 million cubic metres of high quality timber have been lost through fire (Chachu 1993). Besides, the worst effects are on the long term quality of the burnt forest on the soil via a reduction in the long term fertility of the land. 4.4 MINING Mining, it is often said, continues to be a lurking issue causing deforestation. "Nearly all minerals in Ghana are mined in the closed forest area of the country. The total area of gold mining concessions in the forest area of Ghana is 11,4 million hectares”, (Minerals Commission 1991). The major mineral types include; gold, bauxite, manganese and diamond. 95 University of Ghana http://ugspace.ug.edu.gh 4.4.1 MINING AND DEFORESTATION Mining involves the clearing of the vegetation to facilitate the easy operation of mining activities. Thus forest lands as well as other vegetation types are cleared before any mining activity is carried out. Vast expanse of vegetation therefore fall victim in the process of clearing the mining area. Even though data to support this claim are not readily available the fact that mining concessions in the forest areas alone is 11.4 million ha testifies to this claim. Mining operations destroy the forests, for instance the adoption of the open-cast method and the sinking of deep shafts into the earth's crust affect the normal growth of trees. Some trees fell prematurely in the process, especially when they are attacked by some strong winds. This results, since mining operations cause most trees to be hanging on the ground. Besides, underground mining involves the blasting of the rocks (ore) and this disturbs the parent rocks and in the process affects the entire close vegetation. In addition, the release of arsenic substances causes extensive damage to vegetation as well. As Adzobu et al 1991 put it,"tree growth near some mining areas like Bogoso and Prestea have been stunted". 4.4.2 ECONOMIC IMPLICATIONS From table 3.3 in chapter 3, it is seen that the export of minerals is the major foreign exchange earner in Ghana having overtaken cocoa quite recently. The favourable economic climate the commodity is enjoying serves as a catalyst to expand production. University of Ghana http://ugspace.ug.edu.gh Gold production continues to expand year after year as shown in table 5.12. Besides, since the Economic Recovery Programme, there have been many reforms intended to boost production. This has involved increased investments and the enactment of a series of laws to promote small scale mining called "galamsey" operations. These operators ignore the environmental rules associated with mining and dig deep trenches to search for gold. Mining policies including the licensing of small scale miners have actually yielded positive dividends and mining output continues to increase year after year as illustrated in table 5,12 below; Table 4.12 MINERAL PRODUCTION, 1986 - 1992 Mineral 1986 1987 1988 1989 1990 1991 1992 Gold 000 kg 9.0 10.2 11.6 13.3 16.6 26.1 31.5 Diamond 000 ca 599.2 442 215.9 171,2 150.3 419.4 584.5 Bauxite 000 tonnes 204.0 195 287.3 347.1 382.1 485.1 498.2 Manganese 000 tonnes 259.3 253.6 230.9 334.2 364.0 415.2 448.4 Source; Adapted from the Statistical Service, Quarterly Digest of Statistics, March 1992. From Table 4.12, output of gold mining increased steadily from 9,000 kg in 1983 to a peak of 31,500 kg in 1992. In 1993, according to ISSER 1993, gold earnings alone reached a peak of $415.7 million which exceeded the programme target of $371.6 million. Foreign exchange from earnings as a proportion of total earnings by the 97 University of Ghana http://ugspace.ug.edu.gh mining sector increased from 86% in 1986 to 88% in 1992. This is followed by diamond, manganese and bauxite. Apart from gold, the production level of all the other minerals though with some fluctuations, have increased. In Ghana the favourable prices obtained from the export of minerals, is being compromised with the destruction of our environment. Since mineral production is expected to increase, better policies must be put in place so that foreign exchange is not compromised with environmental hazards. Since mining causes a lot of environmental defects especially on the immediate environs, mining companies should be allotted a land in their districts of operations, preferably close to their area of operation, in order to plant trees as a compensation to the environs. 4.3 SUMMARY OF THE CHAPTER The main focus of this chapter has been the issue of logging, woodfuel consumption, mining and bushfire and how the perverse incentives affect each of these in contributing to deforestation. Both the historical and the present-day procedure in the allocation of timber concession have been outlined in this chapter. The chapter further analyses the results of a survey of the relative cost of some households regarding their inclinations towards alternative forms of energy. It identifies poverty as the main hindrances to the patronage of gas and electricity and recommends subsidization of such energy forms as well as other measures to alleviate poverty. A regression of the volume of log exports on 98 University of Ghana http://ugspace.ug.edu.gh real value from such exports is run in this chapter to confirm that loggers respond to price incentive to cut more trees for export. The chapter has also estimated and compared the value of a m of log (exported in the raw form) with the processed value of a m^ of the same log. From the estimation, if Ghana is to benefit from her Timber Industry, then exportation of raw timber should be banned since the profit from processing is quite substantial. Many entrepreneurs are reluctant to enter into the wood processing industry though it is lucrative. The reason has to do with the higher initial capital outlay required to purchase machines coupled with lack of credit to such prospective entrepreneurs. In addition bushfires, mining operations and their contributions to deforestation have been analysed in this chapter. 99 University of Ghana http://ugspace.ug.edu.gh CHAPTER FIVE THE MATURE OF INCENTIVES 5.0 INTRODUCTION In this chapter, we consider incentives facing economic agents under the various sectors who are contributing to deforestation in Ghana. 5.1 AGRICULTURAL SECTOR Several incentives can be outlined under agricultural practices which hinder the conservation of forests by farmers, such incentives include; the availability of subsidies to enhance production and the need for extension services to direct farmers. The rest are efficient exchange rate systems as well as efficient tax system in the acquisition of forestlands. The main motive of every farmer like any other economic agent is profit maximization or cost minimization. In course of producing food for the growing Ghanaian population, negative environmental consequences have emerged. Furthermore, deforestation has been fuelled in a way by the untimely adoption of a particular expenditure reducing policy like the removal of subsidies from inputs and using the market for its distribution. Such a policy has reduced the use of inputs by farmers with a consequent productivity losses. For instance, an input such as fertilizer continues to experience price increases as depicted below in table 5,1. 100 University of Ghana http://ugspace.ug.edu.gh TABLE 5.1. FERTILIZER PRICES, 1983-1993 (CEDIS/50kg) YEAR NPK 15-15-15 20-20-20 23-15-5 MOP SP 1983 45 58 na 45 na 1984 295 440 na 295 na 1985 295 440 na 295 na 1986 400 700 na 490 na 1987 820 1380 na 1270 84 1988 1600 2300 na 2100 84 1989 2350 3350 na 3250 84 1990 3100 4200 na 3800 3000 1991 3100 4200 na 3800 3000 1992 3100 4200 na 3800 3000 1993 7947 8131 11,701 na na Source: Crop Services Department, Ministry of Food & Agriculture, Accra. Notes: NPK -> Ammonium Sulphate. MOP -> Munate of potash SP -> Super Phosphate. From Table 5.1, just within a decade there was a price increase of about 17,560% and 13,919% for NPK and 15-15-15/20-20-20 respectively. It is therefore no doubt that those farmers who cannot afford such price increases to replenish the cultivated land have to fall on secondary and virgin forests to increase productivity. In the 1960, s through to the late 1970 ,s fertilizers were given to extension officers on the field, stationed at the various farming communities, to distribute to registered farmers at a moderate fee. The farmers were in addition thought how to mix and apply them. 101 University of Ghana http://ugspace.ug.edu.gh Since 1989, fertilizer distribution has been privatized making it more difficult for some small scale farmers with little turnover to purchase the input.. Their only alternative therefore is to encroach on virgin forest lands as well as other secondary forests to increase productivity and hence confirming the claim by Hawthorne and Musah (1993) that, both legal and illegal farms are common in the forest reserves. Soils in Ghana are noted for their low levels of nitrogen and phosphorus. This problem is being exacerbated by the reduction in the fallow period which is a result of population pressure. Despite the low levels of available nitrogen and phosphorus, fertilizer- use in Ghana is very low. Based on FAO data, in 1990, fertilizer used per ha of land in Ghana was 4.5kg compared with 5.4kg, 12.1kg and 48.1kg per ha of land in Mali, Nigeria and Kenya respectively. Ghanaian farmers in general are noted for their high birth rate and hence requiring higher financial commitments for the upkeep of such children. With the present high fertilizer prices coupled with farmers' commitments, it becomes difficult for some farmers to mobilize the required amount needed to purchase the input. With their limited income as a result of higher commitments, so little is saved, and hence farmers consider the purchase of fertilizer a low priority on their scale of preference. Whilst some purchase less than required by the crops, others ignore it completely. Generally, rural specialization and access to credit increase farmers' factor productivity. However, the withdrawal of subsidies by the government coupled with lack of credit to farmers University of Ghana http://ugspace.ug.edu.gh by the commercial banks over the years, (because they consider agriculture to be too risky) has had a considerable impact on farmers' output. As at now the lending rate to the agricultural sector by the commercial banks is around 31% which is at par with lending rates to other sectors like commerce. In 1984 for instance, though the agricultural sector contributed more than half the GDP of Ghana, it received less than a third of the institutional loans. Also, in 1988, it contributed about 47.2% of the country's GDP, it received loans of only 16.6%, whilst commerce which contributed about 21.5% of GDP was allotted institutional loans of 30.3%. Besides, there is lack of extension services, and even in places where they are available their services are disputed by the farmers. The farmers' dissatisfaction with the extension service, may be attributed to the disbelief in the system. According to some farmers, the extension services suffer from lack of critical mass of qualified people, weak research/extension links, dispersed responsibilities and poor logistics. On the records of the Ministry of Agriculture, as at 1992, there were about 2,800 extension staff in the Extension Service Department and a further 1,500 in the Cocobod. About 45% of the staff of the Extension Department have had little or no formal agricultural training, and only about 35 had University or Diploma training, The price incentive resulting from the continuous depreciation of the cedi serves as a catalyst to most farmers to expand their farmlands to enjoy from such favourable climates. In Ghana the price incentive affects only tree crops mainly cocoa. 103 University of Ghana http://ugspace.ug.edu.gh Besides, it is often argued that taxation on agricultural lands are often low and in some cases farmers are even subsidized for converting forest lands into agriculture. The land tenure system pertaining in certain areas does not allow levying heavy sums on the land and this makes the farmers have little or no incentives of conserving the lands they own. In some parts of Western region of Ghana, for instance some of the Chiefs are motivated by few bottles of Schnapps to give out lands to prospective farmers. As with any crop, a farmer’s willingness to plant trees will depend on the value of the crop, the available technology, and the speed with which his or her initial investment is recovered. However lack of technological advancements does not pave way for developing countries to come out with fast growing species that will encourage people to go into tree planting. In some cases seeds and seedlings are not readily available for individuals who want to go into tree planting. These make incentives under agriculture in Ghana to be perverse and hence fuelling deforestation. 5.2 LOGGING Incentives under logging include; concession arrangement procedures including the licensing procedures, and manpower requirements. In the case of wood processing, the initial capital outlay to purchase machinery is the major incentive. Logging is another sector that suffers so many setbacks. In the first place concession agreements are not respected by the parties involved. 104 University of Ghana http://ugspace.ug.edu.gh Concessions are also granted for shorter periods and at very low rates. Concessions granted for shorter periods compel the concessionaires to fell timber in haste whilst ignoring any reforestation schemes necessary for the purpose of sustainability. In addition, the Forestry sector is saddled with logistic problems such as manpower to monitor the loggers. In 1981 for instance, the Forestry Department of Ghana had 1417 forest guards whilst in 1982 they had 1323 forest guards. As at June 1995 , the number had reduced to 1183. Ghana can boast of over 280 reserves (excluding forest reserves which have been converted to wildlife conservation areas) which covers an area of over 23728.92 kmJ. Considering the continuous increase in the Ghanaian population of over 3.1% per annum, coupled with the increased pressure on the demand for land one would have wished an increase in the number of forest guards to check forest encroachers. However, Such limitations have created avenues for logging companies, to capitalize on such weaknesses to fell trees indiscriminately and ignore the necessary laid-down rules. On the other hand since concessions are granted for limited terms, the concession holders have little incentive to replant, to exercise care in their logging procedures, or even to conserve younger trees until they reach the efficient, harvest age. In addition, licensing procedures to register one as a logger are saddled with rent-seeking behaviours of some government officials. Such officials use their offices to fill their private pockets at the expense of the state. Lack of credit to investors who want to 105 University of Ghana http://ugspace.ug.edu.gh go into processing as a means of reducing the rate of deforestation needs a serious attention. Even though wood processing is more lucrative, (as our estimated value depicts in chapter four), and helps to check deforestation, the huge initial capital outlay coupled with lack of credit deter most entrepreneurs from going into processing. The depreciation of the cedi also continues to motivate log exporters to intensify their activities in order to gain more hard currencies. Moreover, royalty fees are very low compared with international rates and even the 'willingness to pay', Convery and Tutu (1991) pointed out that the royalty fee charged in Ghana is just one-sixteenth of the willingness to pay estimated, 5.3 THE ENERGY SECTOR (WOODFUEL CONSUMPTION) Poverty coupled with the ease with which wood is gathered from the forests are among the major causes of deforestation in Ghana. Majority of Ghanaian households continue to patronize the use of firewood and charcoal not because they dislike the use of gas and electricity as alternative sources of energy but this is mainly because of poverty. Widespread poverty compels them to fall on firewood and charcoal because they are cheaper compared to other energy forms. Whilst electric stoves and gas cylinder gadgets sell at exorbitant prices on the market, firewood and charcoal are cheap to come by. In some cases, they are by-products of farmers who clear their lands for agricultural purposes and are gathered free, 106 University of Ghana http://ugspace.ug.edu.gh In the case of charcoal burners, the processes and fees involved in obtaining concession permits are easy and low respectively. For instance the parties sometimes do not enter into any reforestation agreements and this serves as an incentive for other charcoal burners to enter into this industry. 5.4 BUSHFIRES AND MINING OPERATIONS The need for meat both for subsistence and for commercial purposes (and with regular market) are the major factors behind bushfires. Thus apart from farmers using fires to burn farm-lands as a result of financial constraints as outlined under agriculture, hunters are to blame on the other hand for setting the vegetation ablaze with the aim of getting meat for subsistence purposes, and as a source of income. Most hunters conscious of the higher demand for bushmeat on the local market intensify their search for bushmeat by setting fires to the bush to trap the animals. Thus bushfires have been intensified over the years as a result of favourable prices being offered on the local market especially at Kantamanto (suburb of Accra). Tutu et al 1994 showed that in general, there is high demand for bushmeat in Ghana as a source of protein. Their study showed that in Accra for instance, the intake of bushmeat is about 711 as against other source of animal protein intake. In addition, they found out. that the composition of bushmeat intake at chopbars in Accra is about 6 5%. University of Ghana http://ugspace.ug.edu.gh Besides, animal rearers also burn dry vegetation to induce fresh growth for the animals and the main reason behind this is lack of supplementary feeding. It is unfortunate that such prime motive of rearers get off course when the fires they set, stray into nearby forests and raze them down. Should there be a supplementary feeding in the form of hay and silage during these periods, burning might reduce. In order to save some money some farmers burn the vegetation to reduce their labour costs. A unit labour hired for about five hours to gather felled trees and other materials to prepare the land finally for planting, cost $6,000. Most farmers who do not have the means (money to pay for labour) are compelled to go for the alternative by setting fires to the land. Mineral explorations continue to be a priority of many nations worldwide. Unfortunately, it is often the case that rules regarding such concessions are ignored by these concessionaires. Most concessionaires are not effectively monitored and as a result some concessionaires extend their operations beyond boundaries agreed in the plan. On the other hand illegal small scale mining operations continue to threaten the Forestry sector of Ghana because the Lands and Forestry department lacks the manpower to monitor such activities. 108 University of Ghana http://ugspace.ug.edu.gh 5.5 SUMMARY OF THE CHAPTER This chapter has looked at the nature of incentives facing decision makers which motivate them to cause deforestation. These perverse incentives are lack of subsidies, higher input costs, rent-seeking activity, lack of manpower in the Forestry sector, inefficient tax system, improper concession arrangements, higher initial capital outlay involved in processing. These perverse incentives facing decision-makers can be reduced by effective monitoring of encroachers, employing more forest guards and remunerating them well, alleviating poverty and revamping the livestock sector. In addition there should be intensive education by the media, self-discipline of government officials, and finally by re-directing policies that encourage deforestation. 109 University of Ghana http://ugspace.ug.edu.gh CHAPTER six 6.0: FINDINGS, POLICY DIRECTIVES, SUMMARY AND CONCLUSIONS 6.1 FINDINGS The rate of deforestation, estimated to be over 2% per annum, continues to be a growing threat to the economy of Ghana. It is discernible from the study that, certain land-use practices being adopted by economic agents as a result of perverse incentives, serve as a negative externality on the nation's rich forests. The major sources are agricultural extensification, indiscriminate logging, woodfuel consumption, bushfires and mining activity, with incentives playing a major role. In chapter three for instance, we have outland how the inefficient agricultural practices coupled with excessive pressure on the land, have led to the expansion of farmlands especially food crop farms and cocoa farms into the forest zone and hence causing deforestation. These claims have been supported with the required data and analyses. In chapter four, we found out that some species are being- overexploited (that is comparing the annual allowable cut and volume above the cut limit). Furthermore, the ascendancy of illegal log operators in the bush implies (as suggested) that the manpower or incentives at the Forestry Department is not enough to monitor the activities of such operators. Besides, the study finds immense profitability and benefits in the processing of timber rather than exporting the raw wood. The study further attributes the high 110 University of Ghana http://ugspace.ug.edu.gh patronage of charcoal and firewood, as against other energy forms, to high poverty level of households. Apart from bushfires, mining operations are considered a lurking issue causing deforestation. 6.2 POLICY RECOMMENDATIONS 1. In the case of agriculture, agrisylvicultural“ practices should be intensified. 2. Apart from the restoration of subsidies in agriculture, the unemployed agricultural science graduates should be given the required training, well remunerated, to help improve the link between farmers and extension service in order to boost product ion. 3. Social forestry involving the community, with women playing a major role should be encouraged. 4. The activities of charcoal burners should be closely monitored with the required task force. 5. In addition, the activities of illegal and unlicensed chain saw operators should be checked. Those without license should be made to procure one, and those who still ignore such a directive should be made to face the laws of the land. 6. Licenses to concessionaires should be tied to both afforestation and reforestation schemes prepared by the concessionaires themselves, and renewals should strictly be based on past records. 7. The ban on log exports should be enforced indefinitely. ~u The planting of both crops and trees, 111 University of Ghana http://ugspace.ug.edu.gh 8. The concession and royalty fees should further be reviewed upwards to match international standards and the willingness to pay. 9. Any breach of a forest concession agreement should attract a mandatory penalty of withdrawal of the concession. Offenses should in addition carry the penalty of a fine. 10. The government should create the necessary environment for the setting up of furniture industries to facilitate processing of logs,, and this can check deforestation and create employment as well. 11. Each district, should have quite a sizeable number of forestry personnel to facilitate close souveillance of encroachers. 12. Formation of mobisquads throughout the country should be given the needed boost, The involvement of hunters in the rural areas in such mobisquads should not be neglected. Awards should be given to deserving members at the end of each year. 13. Family planning campaign should be given the necessary boost especially in the rural areas to help reduce the population pressure on the land. The Film Industry should be showing films in the rural areas. This is necessary because the use of TV advertisement to educate couples about the need for family planning is ineffective. Poverty does not allow the rural people to afford a set of Television on which such advertisements are shown. 14. Prices of gas cylinders should be reviewed and be made affordable to both the rural and the urban poor to help reduce 112 University of Ghana http://ugspace.ug.edu.gh the higher dependence on woodfuel. If possible, the government should subsidize their prices. 15. The campaign for the use of improved stoves should be intensified especially in the North where the Pito brewers waste much kilograms of wood using the traditional stoves and tripods . 16. The government should make seedlings available for people who are ready and willing to go into tree planting voluntarily as well as those who are willing to go into it for a livelihood. 17. Finally, the media should intensify its campaign efforts at educating the Ghanaian pubic regularly regarding the dangers of deforestation. Films can be shown in the rural areas as well to achieve this objective. 6.3 SUMMARY AND CONCLUSIONS The fast rate at which the nation's forests are being depleted as a result of unsustainable land-use practices adopted by economic agents coupled with the perverse nature of incentives necessitated this study. It is evident from this study that, perverse incentives play a leading role in fuelling deforestation in Ghana, It is my fervent hope that the conclusions derived, and the policy directives suggested, would assist and guide policy-makers in confronting the issue of deforestation. Finally, it is hoped that this study will add to the existing literature on deforestation. 113 University of Ghana http://ugspace.ug.edu.gh 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 NOMINAL EXCHANGE RATE 1.02 1.03 1. 33 1.17 1.15 1.15 1.15 1.15 1.76 2.75 2.75 2.75 2.75 8.83 35.99 54. 37 89.20 153.73 202.35 270.00 326 . 33 367.83 437.09 APPENDIX 1 University of Ghana http://ugspace.ug.edu.gh APPENDIX 2. VALUES USED TO RUN REGRESSION ONE YEAR COCOA OUTPUT (MT.TONNES) REAL PRICE LAGGED 5 YEARS.( 32 4,236 170 4 1962 30 178 178 100 1964 28 772 645 84 1965 27 232 - 0 1966 26 133 51 38 1967 25 171 - 0 1968 24 1025 1025 100 1969 23 3668 200 5 1970 22 2633 2160 82 1971 21 4079 1470 36 1972 20 3378 50 1 1973 19 1060 - 0 1974 18 383 400 48 1975 17 603 356 59 1977 15 714 - 0 1978 14 49 - 0 1979 13 117 - 0 1980 12 529 90 17 1981 11 184 90 49 1982 10 24 - 0 1983 9 62 - 0 1984 8 55 - 0 1985 7 10 - 0 1986 6 40 - 0 C .A -> current age. T.A.P -> Total area planted. A.R.S -> Area reputed successful. R.A.S -> Rate of success. Source: Adapted from Plantation Survey — Ghana Forestry Department and Overseas Development Administration. 117 University of Ghana http://ugspace.ug.edu.gh REGRESSION RESULTS WITH THE INCLUSION OF REAL GDP Qst = 5.48 + 0.1961P + 0.0384Y SE (21.3965) (0.0292) (0.0051) T-Ratio 0.2560_____________6.7098___________7 . 5456 R2 = 0.9049 F = 40.42 DW = 2.0666 R-Squared adjusted 0.883 APPENDIX 5 118 University of Ghana http://ugspace.ug.edu.gh BIBLIOGRAPHY 1. A World Bank Policy Paper, The Forest Sector September, 1991. 2. Agyapong, G.T., and Awadzi, T.W. An environmental Study of landuse, Akyempim-Subri Mining Concession, Western Region, Report to the Tropical Exploration and Mining Company Limited. Accra 1989. 3. Adzobu et al, May 1991, Ghana Biodiversity Review, Accra. 4. Appiah S.K., 1984. Charcoal and Fuelwood Consumption in Kumasi. 5. Assim-Nyarko S., 1982. The Use of Woodfuels in Ghanaian Villages. 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