Economic valuation of the costs of degradation leads to sustainable development in Rwanda
Channel: The Poverty-Environment Initiative
Date: 2014-01-30

Economic valuation of the costs of degradation leads to increased investments in pro-poor sustainable development in Rwanda 

Services provided by nature are the very foundation of life. Yet, among all the population, the poor are the most dependent on them and thus the most adversely affected by degradation. 

Convincing policy makers of the contribution of natural capital to the economy and human wellbeing has always been a great challenge. 

Yet, Rwanda, has demonstrated that it is not impossible. 

PEI supported an economic valuation of the services provided by Gishwati forest and Rugezu wetland. One of the findings was that 167% rise in the per capita cost of electricity was a result of the degradation of both Gishwati forest and Rugezi wetland. 

Results of this study were crucial for the government to take action.  

Another economic study supported by PEI demonstrated that about 15 million tons of soil was lost annually. Almost 2% of the country's GDP. These findings were once more crucial for the government to take action and adopt policies to reverse soil erosion and promote sustainable agricultural practices such as terracing. Which drastically improved food security.