Willingness to Pay and Factors Influencing the Amount of Forestry Insurance by Tree Growers in Mufindi, Tanzania
Ikisiri
Forests influence the economic development of emerging economies by providing ecological and social services to human beings and natural systems. With increasing demand for wood products, private tree growers reduce pressure in natural forests by providing services similar to those in natural forests. Private tree growers faced substantial risks due to climatic change. Forest catastrophes were increasing and causing economic losses to the tree growers, while no efforts were being made to address the situation. This study will analyze willingness to pay, perceptions, and factors influencing the amount to pay for fire, disease, and pest insurance. A multistage sampling technique was employed to sample 120 tree growers in four villages which include Ifwagi, Nundwe, Mwitikilwa and Ilasa. The Tobit model was used to analyze factors influencing the amount of forest insurance. Results indicate that 84.2% of the tree growers were willing to pay for forest insurance, age, Income, previous fire, tree species planted, land ownership, and farm location are significant influences on the amount of forest insurance for tree stand protection. This study recommended that insurance providers develop affordable, flexible policies and collaborate with local authorities to create awareness campaigns. Policymakers should also explore subsidies or incentives to reduce barriers to entry for tree growers
Upakuaji
Marejeleo
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