Document Type : Research Paper

Authors

Abstract

The Cost/ Benefit approach in taken to determine and compare the economic impacts of the main components of the Nomadic Livestock Production System in this studies before and after settlement the benefits and costs evaluation of livestock production systems are based on the impact of ecological changes in "with" and "without" project conditions. Transhumance living style of the nomads is called “without project” while “with project”, or the nomad settlement project, provides a life style of farming-animal husbandry dependent on highland range and cropland residues. The incremental benefits and costs during the performance of the projects are measured and the effects of discount rates in "with" and "without" project are evaluated. The results indicate that in the Bakkan region, with the crucial role of ecological impacts, discounting effects are not strong unless environmental benefits significantly outweigh the cost saving benefit. The sensitivity analysis of incremental net present value and benefit/cost ratio of the “with” project, with a longer sustainable life cycle, showed that “with” project is economically attractive and under these circumstances, could be considered as a viable alternative.

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