Social cost-benefit analysis of investment in rehabilitation of multipurpose small reservoirs in northern Ghana using an ecosystem services-based approach

Multipurpose small reservoirs are essential infrastructure in providing water for irrigation and non-irrigation uses in water stress areas of northern Ghana. Unfortunately, the flow of multiple ecosystem services from small reservoirs have been declining over several years due to lack of rehabilitat...

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Main Authors: Bekoe, J., Balana, Bedru, Nimoh, F.
Format: Journal Article
Language:Inglés
Published: Elsevier 2021
Subjects:
Online Access:https://hdl.handle.net/10568/117251
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author Bekoe, J.
Balana, Bedru
Nimoh, F.
author_browse Balana, Bedru
Bekoe, J.
Nimoh, F.
author_facet Bekoe, J.
Balana, Bedru
Nimoh, F.
author_sort Bekoe, J.
collection Repository of Agricultural Research Outputs (CGSpace)
description Multipurpose small reservoirs are essential infrastructure in providing water for irrigation and non-irrigation uses in water stress areas of northern Ghana. Unfortunately, the flow of multiple ecosystem services from small reservoirs have been declining over several years due to lack of rehabilitation and poor management. Using selected multipurpose small reservoirs and available secondary and survey data, this paper applied an ecosystem services-based approach in the economic analysis of investment in rehabilitation of small reservoirs in northern Ghana. The findings reveal that private financial returns from irrigated crops have negative net present value (NPV) and an internal rate of return (IRR) lower than the cost of capital, implying a lack of economic incentive for private investors in their rehabilitation. However, accounting for the multiple ecosystem services such as livestock watering, fisheries, recreation services, domestic water, and climate regulation show positive NPV and high return on capital (IRR up to 43%). Policy choices would be biased against reservoir development if stakeholders consider only irrigation benefits. Based on the findings we recommend public investment in rehabilitation of multi-purpose small reservoirs to harness the multiple ecosystem services and community livelihoods. We further recommend public–private-user partnership business model to address current management inefficiency and optimize the flows of ecosystem services from small reservoirs to wider community.
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spelling CGSpace1172512025-03-18T19:50:23Z Social cost-benefit analysis of investment in rehabilitation of multipurpose small reservoirs in northern Ghana using an ecosystem services-based approach Bekoe, J. Balana, Bedru Nimoh, F. investment water reservoirs water rehabilitation irrigation vegetable crops return on investment ecosystem services Multipurpose small reservoirs are essential infrastructure in providing water for irrigation and non-irrigation uses in water stress areas of northern Ghana. Unfortunately, the flow of multiple ecosystem services from small reservoirs have been declining over several years due to lack of rehabilitation and poor management. Using selected multipurpose small reservoirs and available secondary and survey data, this paper applied an ecosystem services-based approach in the economic analysis of investment in rehabilitation of small reservoirs in northern Ghana. The findings reveal that private financial returns from irrigated crops have negative net present value (NPV) and an internal rate of return (IRR) lower than the cost of capital, implying a lack of economic incentive for private investors in their rehabilitation. However, accounting for the multiple ecosystem services such as livestock watering, fisheries, recreation services, domestic water, and climate regulation show positive NPV and high return on capital (IRR up to 43%). Policy choices would be biased against reservoir development if stakeholders consider only irrigation benefits. Based on the findings we recommend public investment in rehabilitation of multi-purpose small reservoirs to harness the multiple ecosystem services and community livelihoods. We further recommend public–private-user partnership business model to address current management inefficiency and optimize the flows of ecosystem services from small reservoirs to wider community. 2021-08 2021-12-28T03:25:24Z 2021-12-28T03:25:24Z Journal Article https://hdl.handle.net/10568/117251 en https://doi.org/10.1016/j.agsy.2019.03.021 https://doi.org/10.1016/j.wre.2019.03.001 https://doi.org/10.1016/j.agwat.2021.106855 Limited Access Elsevier Bekoe, J.; Balana, B.; Nimoh, F. 2021. Social cost-benefit analysis of investment in rehabilitation of multipurpose small reservoirs in northern Ghana using an ecosystem services-based approach. Ecosystem Services 50(2021): 101329. https://doi.org/10.1016/j.ecoser.2021.101329
spellingShingle investment
water reservoirs
water
rehabilitation
irrigation
vegetable crops
return on investment
ecosystem services
Bekoe, J.
Balana, Bedru
Nimoh, F.
Social cost-benefit analysis of investment in rehabilitation of multipurpose small reservoirs in northern Ghana using an ecosystem services-based approach
title Social cost-benefit analysis of investment in rehabilitation of multipurpose small reservoirs in northern Ghana using an ecosystem services-based approach
title_full Social cost-benefit analysis of investment in rehabilitation of multipurpose small reservoirs in northern Ghana using an ecosystem services-based approach
title_fullStr Social cost-benefit analysis of investment in rehabilitation of multipurpose small reservoirs in northern Ghana using an ecosystem services-based approach
title_full_unstemmed Social cost-benefit analysis of investment in rehabilitation of multipurpose small reservoirs in northern Ghana using an ecosystem services-based approach
title_short Social cost-benefit analysis of investment in rehabilitation of multipurpose small reservoirs in northern Ghana using an ecosystem services-based approach
title_sort social cost benefit analysis of investment in rehabilitation of multipurpose small reservoirs in northern ghana using an ecosystem services based approach
topic investment
water reservoirs
water
rehabilitation
irrigation
vegetable crops
return on investment
ecosystem services
url https://hdl.handle.net/10568/117251
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AT nimohf socialcostbenefitanalysisofinvestmentinrehabilitationofmultipurposesmallreservoirsinnorthernghanausinganecosystemservicesbasedapproach