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Classification and Valuation of Green BeltClassification and Valuation of Green Belt
Derived Ecosystem Goods and Services:Derived Ecosystem Goods and Services:
An IntroductionAn Introduction
Dr. Rajiv Pandey
Scientist StatisticsICFRE
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Green Belt Why Accounting of Services Green Belt Ecosystem Functions
Green Belt Ecosystem Goods and Services Valuing of Ecosystem Goods and Services What to do & how
OUTLINE
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According to Wikipedia, a greenbelt is a policy or land use
designation used inland use planning to retain areasof largely undeveloped, wild, oragricultural land surrounding orneighbouring urban areas.
Green Belt
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protect natural or semi natural environments; improve air quality within urban areas;
ensure that urban dwellers have access to countryside
provision for educational and recreational opportunities;and
protect the unique character of rural communities whichmight otherwise be absorbed by expanding suburbs.
Purpose of Green Belt
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For walking, camping, and biking
areas close to the cities and towns.
Habitat for wild plants and animals.
Cleaner air and water
Better land use of areas within thebordering cities.
Recreation Purpose
Green Belt Benefits +ve
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Facilitate for high pricing of land andbuilding
Spur the growth of areas muchfurther away from the city core thanif it had not existed, thereby actuallyincreasing urban sprawl.
Green Belt Benefits - ve
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Organismal ecology
Adaptation withabiotic environment
Ecosystem ecology -
Concerned with
ecosystems Population Ecology
No of Individuals Growth & Density
Services of Green Belt Ecological View
Community Ecology
Concerned with all sort of
ecology
Individual to Ecosystem
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What are Ecosystem Services?
Ecosystem services are the conditions andprocesses through which natural ecosystems,
and the species that make them up, sustain andfulfill human life.
They maintain biodiversity and the productionof ecosystem goods and services.
Daily, G. (ed.), 1997, Natures Services: Societal Dependence on Natural Ecosystems. Island Press, Washington D.C.
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Important issues onecosystem services
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Three important issues :
(1) Identification of ecosystem services
(2) How much do people use
(3) Valuation of ecosystem services
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Ec
Goods
Firewood
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Why ValuationWhy Valuation
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Issue -Issue - Services and its LinkagesServices and its Linkages
Provide array of goods and services.
Debate on ecosystem stresses and shockswith reduction in the diversity
Imbalancing the system
- No effect on systemNo effect on system
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Issue Carbon TradingIssue Carbon Trading
Its mine, its yoursIts mine, its yours
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Issue - Issue on climate changeIssue - Issue on climate change
Comparative studyComparative study
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Under Forestry & Logging sectorUnder Forestry & Logging sector
Forestry planting & conservation of forests, gathering
of forest products, charcoal burning carried out in forests
Logging felling & rough cutting of trees,
Farmyard wood
Green AccountingGreen Accounting
Issue Incorporation in National AccountsIssue Incorporation in National Accounts
Lack of dataLack of data
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The Millennium Development Goals (MDGs) are the world's
time-bound and quantified targets for addressing basic
human rights
In a world of plenty, 1billion people are so poor, their lives are indanger. How to change that for good March 6, 2005, TIME MAGAZINE
ESs can help solving problem of poverty and hunger
3. Promote gender
equality and
empower women
MDG7 Indicators
25. Proportion of land area covered by forest
26. Ratio of area protected to maintain biological
diversity to surface area
27. Carbon dioxide emissions per capita andconsumption of ozone-depleting CFCs
Issue Role in Millennium Development GoalsIssue Role in Millennium Development Goals
GlobalGlobal
requirementsrequirements
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Key Links Between MDG and theKey Links Between MDG and the
EnvironmentEnvironment
Eradicate extreme povertyEradicate extreme poverty
and hungerand hunger
Protection and extraction for livelihood and well
being.
Achieve universal primaryAchieve universal primaryeducationeducation
Use of additional income on education
Promote gender equalityPromote gender equalityand empower womenand empower women
Income from extractions
Reduce child mortalityReduce child mortality Improved management of local watersheds resultinto decrease of water borne disease
Improve maternal healthImprove maternal health Use of fuelwood generate Indoor air pollutionresults into health hazards
Combat HIV/AIDS, malariaCombat HIV/AIDS, malaria
and other diseasesand other diseases
Preventive environmental health measures
Develop a globalDevelop a globalpartnership forpartnership fordevelopmentdevelopment
Better climate
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Value of Green BeltValue of Green Belt
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Value of Green Belt
Play a social role in easing tensions
Improving psychological health;
People simply feel better living around trees.
Study demonstrated that hospital patients placed
in rooms with windows facing trees heal faster and
require shorter hospital stays (Ulrich, 1990).
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Therefore there is a need to look the Green Belt and Forestin different way to visualise the real worthto visualise the real worth of it.
This should include all goods & servicesgoods & services derived from it.
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How much worth? Forest
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Example
100,000 species of pollinators, most important pollinator- honey bee-
is for agril and horticulture purposes, natural wild pollinator are
often forest species, their service is between $4 to $7 billion/year to
US agriculture
Carbon storage: Tree and forest store CARBON a close primaryCarbon storage: Tree and forest store CARBON a close primary
forest has 280 ton c/ha. when converted to jhum 200 ton c/haforest has 280 ton c/ha. when converted to jhum 200 ton c/ha
compared to a open forest with less than 100 ton carboncompared to a open forest with less than 100 ton carbon
NTFP: 50 million people depend on NTFP. 40-60% for their annualincome
Financial value of world timber (commercial and non commercial ) :
the annual value of world trade in industrial wood product is $140
billion
We fail to value the goods and services generated by nature. WeWe fail to value the goods and services generated by nature. Wetreat them as free and limitless in naturetreat them as free and limitless in nature
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Carbon value of Indiasforest US $ 24,000million or Rs 1,20,000crores.
Incremental value 1,500 crores
Carbon value of Indias Forests
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At least three levels of research on ecosystem services:
(1) Identification of ecosystem services: How do people use nature?
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Regulation Functions
Habitat Functions
Production Functions
Information Functions
Typology of Green Belt Ecosystem Goods &Typology of Green Belt Ecosystem Goods &
Services (GBEG&S)Services (GBEG&S)
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REGULATION FUNCTIONS
the capacity of natural and semi-the capacity of natural and semi-natural ecosystems to regulatenatural ecosystems to regulateessential ecological processes and lifeessential ecological processes and lifesupport systems through bio-support systems through bio-geochemical cycles and othergeochemical cycles and otherbiosphere processesbiosphere processes.
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PRODUCTION FUNCTIONS
Photosynthesis and nutrient uptake byPhotosynthesis and nutrient uptake byautotrophs converts energy, carbonautotrophs converts energy, carbondioxide, water and nutrients into a widedioxide, water and nutrients into a widevariety of carbohydrate structures usedvariety of carbohydrate structures used
by secondary producers to create anby secondary producers to create aneven larger variety of living biomasseven larger variety of living biomass.
Stat. Br., FRIStat. Br., FRI
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INFORMATION FUNCTIONS
Provide an essential reference functionrovide an essential reference functionand contribute to the maintenance ofand contribute to the maintenance of
human health by providinghuman health by providing
opportunities for reflection, spiritualopportunities for reflection, spiritual
enrichment, cognitive development,enrichment, cognitive development,
recreation and aesthetic experiencerecreation and aesthetic experience.
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Ecosystem Services & their links to human well being;Ecosystem Services & their links to human well being;
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Ecosystem Services & their links to human well being;Ecosystem Services & their links to human well being;
MA, 2005MA, 2005
(1) Identification of Ecosystem Services
How do people use nature?
Ecosystem Services classification from the
Millennium Assessment
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CLASSIFICATION OF ECOSYSTEM FUNCTIONS,GOODS AND SERVICES
An overview of the main functions, goods and servicesAn overview of the main functions, goods and servicesthat can be attributed to natural ecosystems and theirthat can be attributed to natural ecosystems and their
associated ecological structures and processes for theirassociated ecological structures and processes for their
use inuse in sustainable basissustainable basis.
Regulation Function
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Regulation Function Maintenance of essential ecological processes and life support system
FUNCTIONFUNCTION ECOSYSTEM PROCESSES &ECOSYSTEM PROCESSES &COMPONENTSCOMPONENTS
GOODS AND SERVICESGOODS AND SERVICES
Gas regulation Role of ecosystems in bio-geochemicalcycles (e.g. CO2/O2 balance, ozone layer,etc.)
1.1 UVb-protection by O3 (preventingdisease),
1.2 Maintenance of (good) air quality
1.3 Influence on climate
Climateregulation
Influence of land cover and biol. mediated(e.g. DMS-production) on climate
Maintenance of a favorable climate (temp.,precipitation, etc)
Disturbanceprevention
Influence of ecosystem structure ondampening env. disturbance
Storm protection
Waterregulation
Role of land cover in regulating runoff &river discharge
Drainage and natural irrigation.
Water supply Filtering, retention and storage of freshwater (e.g. in aquifers)
Provision of water for consumptive use
(e.g. drinking, irrigation and industrial use)
Soil retention Role of vegetation root matrix and soil biotain soil retention.
6.1 Maintenance of arable land.
6.2 Prevention of damage fromerosion/siltation
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Regulation Function Maintenance of essential ecological processes and life support system
FUNCTIONFUNCTION ECOSYSTEMECOSYSTEM
PROCESSES &PROCESSES &COMPONENTSCOMPONENTS
GOODS AND SERVICESGOODS AND SERVICES
Soil formation Weathering of rock,accumulation of organicmatter
7.1 Maintenance of productivity on arable
matter land
7.2 Maintenance of natural productive soils
Nutrient regulation Role of biota in storage and
re-cycling of nutrients (eg.N, P & S)
Maintenance of healthy soil and productive ecosystems
Waste treatment Role of vegetation & biotain removal or breakdown ofxenic nutrients andcompounds
9.1 Pollution control/detoxification
9.2 Filtering of dust particles
9.3 Abatement of noise pollution
Pollination Role of biota in movementof floral gametes 10.1 Pollination of wild plant species10.2 Pollination of crops.
Biological control Population control throughtrophic-dynamic relations
11.1 Control of pests and diseases
11.2 Reduction of herbivory (crop damage)
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Habitat Function Providing habitat (suitable living space) for wild plant and animal species
FUNCTIONFUNCTION ECOSYSTEM PROCESSES &ECOSYSTEM PROCESSES &COMPONENTSCOMPONENTS
GOODS AND SERVICESGOODS AND SERVICES
Refugium function Suitable living space for wildplants and animal
Maintenance of biological andgenetic diversity
Nursery function Suitable reproduction habitats Maintenance of commerciallyharvested species
Production Functions
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Production Functions Provision of natural resources
FUNCTIONFUNCTION ECOSYSTEM PROCESSES &ECOSYSTEM PROCESSES &COMPONENTSCOMPONENTS
GOODS AND SERVICESGOODS AND SERVICES
Food Conversion of solar energy intoedible plants and animals
14.1 Gathering of fruits, etc
14.2 Small-scale subsistence farming
Raw materials Conversion of solar energy intobiomass for human constructionand other uses
15.1 Fuel and energy (e.g. fuel wood, organic matter).
15.2 Fodder and fertilizer (e.g. krill, leaves, litter).
Genetic resources Genetic material and evolution inwild plants and animals
16.1 Improve crop resistance to pathogens & pests.
16.2 Other applications (e.g. health care)
Medicinalresources
Variety in (bio)chemicalsubstances in, and other medicinaluses of, natural biota
Drugs and pharmaceuticals.
Ornamentalresources
Variety of biota in naturalecosystems with (potential)ornamental use
Resources for handicraft, pets,
worship, etc.
Information Function
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Information Function Providing opportunities for cognitive development
FUNCTIONFUNCTION ECOSYSTEM PROCESSES &ECOSYSTEM PROCESSES &COMPONENTSCOMPONENTS
GOODS AND SERVICESGOODS AND SERVICES
Aesthetic information Attractive landscape features Enjoyment of scenery (scenic roads,housing, etc.)
Recreation Variety in landscapes with(potential) recreational uses
Travel to natural ecosystems foreco-tourism, outdoor sports, etc.
Cultural and artistic information Variety in natural features with
cultural and artistic value
Use of nature as motive in books,
film, painting, folklore, nationalsymbols, architect., advertising,
etc.
Spiritual and historic information Variety in natural features withspiritual and historic value
Use of nature for religious purposes(i.e. heritage value of naturalecosystems and
features)
Science and education Variety in nature with scientific andeducational value
Use of natural systems for schoolexcursions, etc.
Use of nature for scientific research
Stat. Br., FRIStat. Br., FRI
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(2) How much do people use (e.g. what proportion of ecosystem flows)? And how
important is the ecosystem flow to the people who use it?
Short answer:
People use a significant fraction of ecosystem flows of carbon,
nutrients and water .
Poor urban households gets wood energy.
Green areas also provide opportunities for many kinds of formal and
informal enterprise related to recreation.
In France, one park charge 20 pound/H for fresh air.
Source: Millennium Ecosystem Assessment, http://www.MAweb.org
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(2) How much do people use (e.g. what proportion of ecosystem flows)? And howimportant is the ecosystem flow to the people who use it?
Some examples:
Cultivated systems cover about a quarter of terrestrial land area
People use about half of earths renewable water
N flows have doubled, P flows tripled, due to human use
Atmospheric CO2 has increased about 32% since 1750
The shade of one large tree may reduce the temperature of a given building to the
same extent as would 15 air conditioners at 4000 British thermal units (BTU),
i.e. 4220 kJ, in a similar but unshaded building.
Energy saving through tree-planting around houses ranges from 10 to 50 percent
for cooling and from 4 to 22 percent for heating.
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(2) How much do people use (e.g. what proportion of ecosystemflows)? And how important is the ecosystem flow to the peoplewho use it?
There is a lot of regional variability and so far the data are uneven
geographically.
Data are best for provisioning services.
Regulating services are poorly quantified, poorly known (outside of
ecology), and often traded off against provisioning services.
People are highly aware of cultural services but so far these are
poorly integrated in quantitative assessments.
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(3) Valuation of ecosystem services: Howvaluable are ecosystem services in
comparison with other things?
Because all life rests on ecosystem services, in one
sense the value is infinity.
However, many decisions involve tradeoffs among
ecosystem services (e.g. agriculture-food-
biodiversity). Valuation can provide information
relevant for evaluating these tradeoffs.
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How to value them
&Which way
??
Quantification of these services is not an
easy task.
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Values of Green Belt Values of Green Belt
which meanswhich means(Instrumental, Intrinsic, Social, Cultural &(Instrumental, Intrinsic, Social, Cultural &
Ecological)Ecological)
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Instrumental ValueInstrumental Value
Instrumental value derives from someInstrumental value derives from some
objective function, i.e. the goal orobjective function, i.e. the goal or
purpose that is being soughtpurpose that is being sought. Example- maximising scenic beauty
Economic value is anthropocentric which
stresses values that brings to benefits tohuman beings - and it ispreference based.
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If the objective, residing 'in'If the objective, residing 'in'
the object,the object, then it will exist
regardless of its valuers, andknown as intrinsicintrinsic value.value.
Example Increase inBiodiversity
Intrinsic Value
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Socio-Cultural Value
The socio-cultural value mainly relatesto the Information Functions andInformation Functions and
deals for traditional, historical ordeals for traditional, historical orreligious reasons.religious reasons.
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Ecological Value
The Ecological ValueEcological Value or importance of a
given ecosystem is, determined both bydetermined both bythe integrity of the Regulation andthe integrity of the Regulation and
Habitat Functions of the ecosystem andHabitat Functions of the ecosystem and
by ecosystem parametersby ecosystem parameters such ascomplexity, diversity, and rarity.
Based on ecological criteria such asBased on ecological criteria such as
integrity, resilience, and resistanceintegrity, resilience, and resistance
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Why instrumental valueWhy instrumental value
Focusing on instrumental values is not intended to
suggest that other values are less important.
But instrumental values have a specific featurewhich makes them relevant to contexts where it is
necessary to 'trade' one value against another.
Because instrumental value is derived fromBecause instrumental value is derived from
human attitudes, wants and appreciation ofhuman attitudes, wants and appreciation of
the object, it is possible to weigh up one gainthe object, it is possible to weigh up one gain
against another gain, and a gain against aagainst another gain, and a gain against a
loss.loss.
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A typology of the uses of values
ContextContext Type of valuesType of values
Demonstrating the importance of Green Beltconservation and sustainable use: awarenessraising
All notions of value: moral, spiritual, cultural, aesthetic, economic,ecological
Determining damages for loss of Green Belt inliability regimes.
Economic approaches most relevant since they produce moneyestimates of damage that could constitute liability.
Revising the national economic accounts toreflect the values of goods and services.
(a) Economic approaches are required for full national accounting.(b) Physical indicators - e.g. hectarage lost or gained, are adequatefor 'satellite accounting'
Land use decisions: e.g.- encouraging conservation, sustainable forestryor agro-forestry relative to other land uses (e.g.agriculture)- setting priorities for protected forest areas
Multi-criteria techniques, cost-effectiveness and costbenefit allrelevant. Involves a notion of cost of policy measure and somemeasure of effectiveness (e.g. biodiversity, value of outputs).Multi-attribute techniques can include spiritual, cultural values etc.
but this raises problems of measurability and trade-off againstother values.
Limiting biological invasions Cost-effectiveness procedures: cost of measure needs to becompared to expected conservation of diversity.
Encouraging eco-certification of products Economic approaches would compare costs of certification withwillingness to pay for certified products.
Table shows that economic valuation can have many different uses, but that non-Table shows that economic valuation can have many different uses, but that non-
economic 'physical' indicators are also useful.economic 'physical' indicators are also useful.
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ECONOMIC CRITERIA
BENEFITS AND COSTS
Benefits
Anything that
increases human
welfare
Valuation based onpublics WTP (or
WTA)
Costs
Anything that decreases
human welfare
Valuation based on
opportunity costs (benefits
foregone due to use of
resources)
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COMPONENTS OF TOTAL ECONOMIC VALUECOMPONENTS OF TOTAL ECONOMIC VALUE
(TEV)(TEV)
Use values Non-use values
Direct usevalues
Indirectuse values
Optionvalues
Bequestvalues
Existencevalues
Value of goodsor serviceshaving directutility(consumptionor production)
Value of goodsor serviceshaving indirectutility
Value of futureuse (direct andindirect) orfuture non-use
Valuereflecting thewish to allowdescendants tobenefit fromuse and non-use values
Value attachedto the fact thata given good
exists
Fuelwood,Recreation
Nutrientrecycling,
Waterpurification
Recreationopportunity
Landscape,recreation
Biodiversity,Habitats
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METHODS OF MONETARY VALUATION OFTHE ENVIRONMENT
Direct valuation Indirectvaluation
revealed preferences statedpreference
s
no preference
on real market onsubstitute
market
on fictitiousmarket
- change in
productivity- expenditure on
protection- substitutable
goods
- hedonistic
prices- transport
costs
contingent
valuationmethod
- dose-effect
method- replacement
costs
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MONETISING IMPACTS
When markets do not exist Environmental impacts
Cultural heritage impacts
Health impacts
Economic valuation methodsTravel cost, hedonic prices, Avertive Action
Contingent valuation, choice modelling
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NON-MARKET VALUATIONTECHNIQUES
T r a v e l C o
H e d o n i c
A v e r t i v e E
R e v e a l e d P r e
- A c t u a l b e- I m p l i e d W
C o n t i n g e n
C h o i c e M
S t a t e d P r e f e r
- I n t e n d e d- E x p r e s s e
T e c h n i q u e s o f E n
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How to do Economic
Valuation?
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Economic Value
Economic valuation methods fall into fourbasic types, each with its own repertoire ofassociated measurement issues:
(1) direct market valuation,(2) indirect market valuation,
(3) contingent valuation,
(4) group valuation.
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Indirect market valuationWhen there are no explicit markets for
services, we must resort to more indirectmeans of assessing values.
Non-market valuation techniques are
twofold. The first involves looking for
markets where the ecosystem affects that
market, even though the service is not bought and sold directly. This is
revealed preferenceprocedure.
Another is stated preference and
essentially a questionnaire based
approach in which individuals are asked
attitudinal questions about the ecosystem
goods & services, and their willingness
to pay to conserve the good or improve
its quality etc.
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Avoided Cost
Services allow societyto avoid costs thatwould have beenincurred in the absenceof those services.
Examples are floodcontrol (which avoidsproperty damages) andwaste treatment (which
avoids health costs) bywetlands.
Trees intercept dust: a belt of trees measuring 30 meters in
width has been found to intercept almost all dust in the air.
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Replacement Cost
Services could bereplaced with human-made systems.
An example is naturalwaste treatment bymarshes which can be(partly) replaced withcostly artificial treatment
systems.
Keller (1979) has quantified an 85 percent reduction in
lead behind a shelter-belt of trees.
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Travel Cost(revealed preference)
The use of ecosystemservices may requiretravel. The travel costscan be seen as areflection of theimplied value of theservice.
The willingness to pay
is inferred fromexpenditures on travelto and from the greenbelt for recreational
purposes.
i h i h d
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Discrete Choice Method(revealed preference)
The values are inferred by lookingat the choices people makebetween two alternatives.
An example would be certificatedtimber: if individuals are willing to
pay more for certified timber thanfor identical non-sustainabletimber, the increment reflectsindividuals' valuation of theenvironmental benefits from
sustainable timber regimes.
Hedonic Pricing
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Hedonic Pricing
(revealed preference) Service demand may beService demand may be
reflected in the prices peoplereflected in the prices peoplewill pay for associated goods;will pay for associated goods;
An example would be theAn example would be thevalue of property locatedvalue of property locatednear to green belt. Ifnear to green belt. Ifother things equal, thenother things equal, thenprices will be higher inprices will be higher incomparison to others.comparison to others.
The differential in the The differential in thehouse price is a firsthouse price is a first
approximation of theapproximation of theeconomic value of theeconomic value of thegreen belt.green belt.
C i l i (CV)
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Contingent valuation (CV)(stated preference)
Service demand may beelicited by posing hypotheticalscenarios that involve thedescription of alternatives in asocial survey questionnaire.
For example, a surveyquestionnaire might askrespondents to express theirwillingness to pay (i.e. theirstated preference as opposedto revealed preference) toincrease the level of water
quality in a stream, lake orriver so that they might enjoyactivities like swimming,boating, or fishing.
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Group valuation Another approach to ecosystem
service valuation that has gained
increasing attention recently
involves group deliberation.
Derived from social and politicaltheory, this valuation approach is
based on principles of deliberative
democracy and the assumption
that public decision makingshould result, not from the
aggregation of separately
measured individual preferences,
but from open public debate.
Wh t t d & hWh t t d & h
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What to do & howWhat to do & how
Data related to ecosystem
services should be collected(to be decided byconsultative meetings)
Valuation Ecological, Socialor economical (Units should
be identical and probablyshould have parlance withglobal scenario)
For some functions it shouldbe in totality
For some functions it should
be on sample basis Period & Time Interval (What
should be time interval)
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A Few Study (Future)
Green Belt obtained EG&S worthGreen Belt obtained EG&S worth(values) for(values) for
Fodder
Medicines (By dwellers & Industries)
Noise Abatement Soil Amelioration
Strom Control
Waste treatment
Potable Water Aesthetic
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ThanksThanks
Contact Address
Dr Rajiv Pandey
Scientist
EIA Division
Indian Council of ForestryResearch & Education(ICFRE)
Dehradun, India
Phone: +91 0 9412918634
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