Economic analysis of option value of mangroves and the use of tax as a policy instrument for conservation: the case of Pangani district, Tanzania.

The mangroves of Pangani are being heavily exploited by both the local community and outsiders, something which can cause the resource to disappear in the near future. The main objectives of this study were to estimate the value that the Pangani people attach to preservation, specifically option value and find the extent to which taxation can be used as a policy instrument for protecting the mangroves. The main hypothesis was that lack of alternative means of livelihood caused this over-exploitation. A secondary hypothesis was that the Willingness To Pay (WTP) for Mangrove Preservation is affected differently by various socioeconomic factors. Data for the analysis were mainly generated through field survey. The survey was carried out in two villages along the mouth of the Pangani river and on one side of the town. A random sampling method was used to gather information from resource users in these areas. The option value of mangroves was found to be high. The majority of the respondents had a positive attitude towards the use of tax as a policy tool to protect the mangroves. It is recommended that conservation and regeneration of mangroves should be given priority. It is also suggested that taxation, with high rates where conservation is being encouraged, should be used to discourage over-exploitation and hence protect the mangrove ecosystem.