Estimating the demand for non-timber forest products among rural communities: a case study from the Sinharaja Rain Forest region, Sri Lanka

Lack of adequate knowledge on forest-people interaction is an important reason for the failure of many conservation policies. This study focuses on the behavior of peripheral communities towards non-timber forest product (NTFP) harvesting by estimating the demand functions for NTFP. The paper develops a theoretical model for deriving the shadow price for NTFP using time allocation among different economic activities. Then it tests the competitive time allocation hypothesis between NTFP extraction and tea plantations, the predominant agricultural sector in the vicinity of Sinharaja rain forest. Results provide statistical evidence for the existence of competitive time allocation between tea plantations and NTFP extraction. Own-price elasticities are consistently inelastic, except for one product. As indicated by the inelastic responses, pricing policies may not be very useful in manipulating subsistence NTFP extraction. Repeating similar studies for commercial NTFPs is encouraged.