In this study, we estimate the market potential and willingness to pay (WTP) for forestry insurance in the Ashanti Region of Ghana. The study examines the factors influencing the expenditure on premiums for forestry insurance across varying quantiles of expenditure and mean WTP premium for forest insurance products.
A total of one hundred and seventy (170) tree growers/foresters were sampled for the study. The quantile regression was employed to analyse the factors influencing the expenditure on premiums for forestry insurance and the double-bound contingent valuation method for the mean WTP.
The market potential was high for Cedrela and low for Emeri. Varying factors affect the expenditure on premiums for forestry insurance at different quantiles. The mean WTP for Teak, Cedrela, African Mahogany, Emeri and Oframo was respectively Ghc 7.989 (US$ 1.38), Ghc 112.747 (US$ 19.44), Ghc 58.069 (US$ 10.00), Ghc 29.092 (US$ 5.000) and Ghc 28.292 (US$ 4.88).
The study adds to the body of literature by estimating the market potential and willingness to pay for forestry insurance, particularly in Ghana.
Mensah, N.O., Amrago, E.C., Twintoh, J.J., Donkor, A. and Anang, S.A. (2022): Estimation of Market Potential and Willingness to Pay for Forestry Insurance: Evidence from Tree Growers in the Ashanti Region of Ghana. World Journal of Science, Technology and Sustainable Development (WJSTSD), Vol. 19, No. 1, pp. 1–15.
